One of the biggest struggles that many buyers face when it comes to purchasing a home is getting their mortgage loan approved in a fast and efficient manner. Mortgage rates and the real estate market are constantly changing, and recent reports have stated that the current low interest rates that we have all been enjoying for the past several years will soon be on the rise. So how can a home buyer who is interested in moving to the Sarasota area get their purchase loan approved faster? Here are a few tips that can help.
Understand Your Paperwork Requirements
Mortgage lenders can provide you with tons of paperwork to fill out. When it comes time for you to purchase a home, you will want to be fully prepared and have the most commonly used forms and documents on hand to save time. These documents can include your recent W-2 statements and federal tax returns for the past two years, recent pay stubs from work, and current bank account statements. Some other important items that you should bring along include your driver’s license or photo ID, social security cards, and the names of every person who will be listed on the mortgage.
If you have recently been involved in a unique situation that affected your credit, such as a foreclosure, or if you make child support or alimony payments, you will need to have the necessary documents available when at your lender’s office. Taking the time before your appointment to gather up these important papers can help to speed up your purchase loan process.
Be Honest with your Lender
You should always be honest with your lender and let them know exactly what is going on in your financial life. Failure to mention important factors such as delinquent bills can cause the loan process to drag out once these issues come to the surface. Even if you feel like the information you share with them may harm your approval outcome, it is always best to share everything. Withholding information can also constitute loan fraud, which can cause far more damage than simply getting denied for a mortgage.
Use Pre-Approvals to Speed up the Process
Getting pre-approved for a loan will always help you to speed up the approval process. Mortgage pre-approvals can help to greatly reduce closing time by as much as a week in some cases. During the pre-approval process, your lender will provide you with a loan application that will help to verify your income and assets. The outcome of this pre-approval will help to give you and your lender a better understanding of how the actual purchase loan process will carry out. It will also inform you on necessary paperwork that you will need in order to complete your loan approval that you may not have thought of in the past.
Buying a Home in Sarasota, FL
While there are many sellers out there that promise to close a home in 30 days or less, that can be a very difficult promise to keep. There are many things that can slow down the process of getting a purchase loan approved. Fortunately there are also several things that you can do to help speed the loan approval along. By getting pre-approved for a mortgage and gathering all the necessary documents that are needed to complete the loan process, you will be one step closer to moving into the home of your dreams.