Whether you’re buying a new home or refinancing your current one, the mortgage process is at times both exciting and stressful. For that reason, many applicants are interested in making the process go as fast as possible, and who can blame them? While restrictions for how quickly a loan can close are in place, borrowers like you can help expedite the process by minding a few strategic details. Below are five tips on how you can make the process go quicker and more smoothly.
1. Apply online.
As internet accessibility has increased and improved throughout the world, more and more mortgage lenders are making the application process available through online means. While in-person applications with a lender are still an option whether you’re purchasing or refinancing your home, many people are turning to online options to apply for mortgages. At Southern Trust Mortgage, we offer a mobile application called STM Connect that acts as a home loan companion. Among many other valuable features, you can also apply for a mortgage directly through the app itself. To learn more, visit southerntrust.com/stm-connect
2. When you’re ready to apply, gather your important documents, and provide additional requested documentation quickly.
Among other loan criteria that must be met, in order to approve your loan, your lender will ask to verify your employment and your income. To do this, they will ask you to provide documentation, usually in the form of W2s, pay stubs, bank statements, and occasionally a copy of your tax returns. In order to keep your loan moving quickly through the process, have the necessary items on hand when you apply.
Occasionally, a lender will ask you for additional information to support your eligibility for a loan. If you are asked to provide further documentation, attempt to do so quickly, so as not to slow down the processing of your mortgage.
3. Improve your credit score and reduce your debt-to-income ratio before you apply.
When you apply for your loan, one of the first things your lender will do is order a credit score report. Every loan program has a minimum acceptable credit score to qualify, though the minimum varies between loan types. In order to qualify for a mortgage with the best rates, you will need a good credit score, and one way you can boost your credit score is by improving your debt-to-income ratio. In most cases, paying down unsecured revolving debt to 30% of their limits can not only improve your debt to income ratio, but also improve your credit scores.
If your credit score is less-than-stellar and you’d like to improve it, Southern Trust Mortgage has a credit specialist on hand to help you.
4. Avoid making large purchases until after the mortgage process is complete.
Once you’ve begun the mortgage process, you should avoid all major purchases until your loan is closed. For example, you may be tempted to purchase new furniture for your home while your loan is in process with your lender, avoid doing so until after your loan is funded as a purchase that depletes a good portion of your reserves or that adds a new debt to your credit can affect whether you loan can close on time.
5. Work with an experienced lender.
It has never been easier to find a mortgage lender, with endless options being made available to you just through a simple google search. As easy as it is to find a company, finding a mortgage company with experience requires a little more discernment. As a customer, an experienced loan officer and mortgage company can offer you insight as to what the best mortgage for you will be; with their expertise, you can rest assured knowing that their suggestions are backed by years of knowledge acquired through assisting borrowers just like you. Also, their guidance can help you avoid missteps in the mortgage process that would potentially slow down your loan.
At Southern Trust Mortgage, we have been helping families with their homeownership goals since 1998. Contact us today and let us help make home happen for you.