Have you finally found your dream home after months of searching, and then you are told that the seller has received other offers? No buyer wants to find themselves in a bidding war against another buyer as it is a stressful situation. Being unprepared and not having your finances in order will make it even more stressful. Here are a few quick ways if you’re looking to speed up your mortgage approval process, here’s a checklist to help you prepare:
· Review your credit report: Maintain a good credit score by paying bills on time, reducing existing debt, and avoiding new credit inquiries. Check your credit report for errors and make sure your credit score is in good shape. A good credit score can positively impact the approval and interest rate you receive.
· Gather financial documents: Gather all necessary paperwork beforehand, including pay stubs, tax returns, bank statements, and any other financial documentation. Having these readily available will expedite the application process.
· Save for a down payment: A larger down payment can reduce the risk for lenders, making them more inclined to approve your loan faster. It can also decrease the time needed for certain approval processes.
· Stay at your job: It’s best to avoid changing jobs during the mortgage approval process.
· Avoid new credit: Don’t apply for new credit or take on new debt during the approval process.
· Don’t make big purchases: Avoid making large purchases, such as a car, during the approval process.
· Respond promptly to requests: Once you’ve applied for a mortgage, respond promptly to any requests from your lender. Delays often occur when there’s a lack of communication or slow responses to queries or requests for additional information.
· Work with a reputable lender: Choose a lender with a good reputation and experience in the mortgage industry.
· Get pre-approved: Consider getting pre-approved for a mortgage before house hunting to speed up the approval process.
Stay informed about the process and ask questions if you’re unsure about any step. Following this checklist can help speed up your mortgage approval process and make the process smoother and less stressful. Good communication with your lender is key to ensuring a smooth and expedited process.
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About the Author:
Babak Moghaddam graduated from University of Southern California in 1985. He entered the mortgage industry as a compliance auditor at the Bank of New York in 1986 and completed his masters in Business Administration two years later. After seventeen years in the traditional mortgage banking world Babak finally transformed this vision into his own practice in 2002 when he formed Charter Pacific Lending Corp, a mortgage company that has provided over $900 Million in residential real estate loans throughout Southern California. Babak and his team do things a little differently than other mortgage providers. They work as financial advisors, because they have come to realize that a mortgage is a very powerful financial tool. And just like any other financial tool, it should be managed as part of the overall financial management plan to reach every home owner’s long and short-term financial goals much faster. You can contact Babak for a free consultation and strategy session at (800) 322-1217 X103.