The mortgage application process has long been bemoaned as time-consuming and overly complicated. And while sure, there are some applications that take longer than others, the truth is it’s all in the planning.
At Embrace, we’ve been working hard to innovate our online loan application and we’ve created a new, user friendly application which can be done from a computer, tablet or smartphone. Whether you’re applying for a mortgage or refinancing your home, the application process can be completed in 15 minutes!
As a buyer, you have a lot of control over how quickly and efficiently your application process goes. If you plan ahead and get your ducks in a row before submitting your app to the lender, it should be smooth sailing all the way through closing day.
If you don’t? Well, that’s another story.
So how can you ensure your application is primed for success? Here are a few tips:
Get your financial paperwork in order.
Your lender is going to need a lot of documentation before approving you for a loan – and it’s likely not stuff you have just laying around the house. Spend some time pulling together you last couple tax returns, W2s and paystubs, and locate statements for any bank accounts, credit cards, loans or other debts you hold. Having these on hand and at the ready will make things infinitely easier once you’ve started your application.
Avoid any big purchases.
If you know a mortgage application is in your near future, avoid making any big purchases from here on out. That means no cars, vacations, new furniture or anything that costs more than a couple hundred dollars. You’ll also want to avoid opening any new credit card accounts or loans until you’ve closed on your home.
Talk to your boss.
Your lender is going to need to verify your employment – and that requires sending a form to your boss (or HR) to fill out. Give your employer the heads up early on to expect the form. If they dawdle on verifying your employment, it could delay your loan approval significantly.
If your lender offers it, get pre-approval before you start home shopping. This allows you to act fast when you find a property you like, and it makes the application process easier on both you and your lender. It may even give you a leg up over other buyers since you’re already a proven and safe bet.
Once you’ve started the application process, you can help move things along by being quick and responsive. If your lender requests additional forms or paperwork, get those back to them as quickly as you can. The faster you act, the faster your lender can approve you.