Are you searching for real estate? Do you have the money you need? As a potential home owner or just land or commercial building owner, you’re constantly looking for a property that matches your requirements. You also most likely need to obtain the funds to purchase the property from a local financial institution. Potential homebuyers often hear that mortgage lending process is tedious and difficult to qualify for.
One common hurdle homebuyers face is not knowing the size of the mortgage which they qualify for, the requirements for securing a mortgage and how long it takes to complete the borrowing process. In this article you’ll find out 6 ways to speed up the mortgage loan process.
- Examine the different financial institutions to determine which is most reasonable for you. You will need to compare interest rates, criteria, fees and charges and very importantly, the deposit required.
- Gather all relevant documents you may need. It is almost impossible for an individual to obtain a mortgage or any other loan without providing certain documents. Find out from the loan officer even before your first meeting what sort of documents they need from you. Some of the usual documents requested by the financial institutions are a letter of intent to sell, employment verification document, income statement or salary slip, average monthly expenditure, proof of asset(s) for down payment or security, etc.
- There are some documents that you may not be able to provide at the moment and can only be obtained after you have found the home e.g a property valuation but it will be good to obtain the contact for a reputable valuer and get an idea of the fees that may be charged. Documents or information requested from the financial institution should be obtained as quickly as possible. Keeping the loan officer waiting on vital information from you means the loan application process is being held up.
- Get pre-approved. This will allow you to have a clear idea of what size loan the bank will grant you. What the bank is comfortable loaning you may be a lot less than what you think you qualify for or a lot more than you are comfortable spending. At that point you and the loan officer could discuss what your best option is. Getting pre-approved also puts you in front of the race, meaning that a smart seller will go with the person who has been pre-approved for a mortgage.
- Don’t be a stranger to your loan officer or your real estate agent. Keep in contact with them so that everyone is familiar with your case. You may be one of the first to receive information on any important changes.
- Hold up on large purchases and avoid overspending before securing the house loan. Also, try to clear up outstanding debts. Clearing up smaller debts will reflect less commitment on your salary. Ensure that you are servicing all debts to the satisfaction of the creditor so you can provide a positive credit report, if required by your lender.
Mortgage financing has become an important tool in the economy and has made it possible for millions of persons to become proud owners of their property. If you decide to take advantage of it, do not let the process be staggered, if you can help.