In this blog, we will discuss and cover if you can getfast pre-approval home mortgage in one hour. The qualification and pre-approval step of the mortgage process is the most important step. One of the major reasons for stress during the mortgage process or a last-minute mortgage denial is due to the loan officer issuing a fast pre-approval home mortgage letter without properly qualifying the borrower. John Strange, a senior mortgage loan originator at Gustan Cho Associates says the following about getting a fast pre-approval home mortgage:
Gustan Cho Associates issues a fast pre-approval home mortgage but all pre-approvals have been thoroughly qualified and vetted.
Loan officers should not be issuing a pre-approval letter without properly qualifying borrowers. The loan officer needs to take the mortgage loan application (1003), run a tri-merger credit report, collect mortgage documents, and run the borrower through the automated underwriting system (AUS) during the mortgage qualification step. In the following paragraphs, we will cover getting a fast pre-approval home mortgage that is properly and thoroughly qualified and vetted.
What Is a Mortgage Pre-Approval and Why Does It Matter?
The loan officer should thoroughly review the borrower’s tri-merger credit report. One of the biggest mistakes loan officers make is not looking out for outstanding credit disputes.
Credit disputes are not allowed during the mortgage process unless the credit dispute is exempt from retraction. Any pre-approval issued with outstanding credit disputes that are not exempt is null and void.
We will discuss and cover credit disputes in later paragraphs. So, the answer to the question of Can You Get Pre-Approved In One Hour On A Home Mortgage is YES. However, the borrower’s cooperation is necessary. Gustan Cho Associates is a mortgage company licensed in multiple states.
Understanding the Pre-Approval Process
Gustan Cho Associates are mortgage bankers, correspondent lenders, and have the ability to broker mortgage loans with wholesale non-QM lenders. Gustan Cho Associates has a national reputation for not having any lender overlays on government and conventional loans. The bottom line is a pre-approval letter should never be rushed and issued without the loan officer properly qualifying the borrower.
Steps to Speed Up to Get Fast Pre-Approval Home Mortgage
Fast Pre-Approval Home Mortgage in One Hour: Quality Versus Speed
Loan officers, homebuyers, home sellers, real estate agents should all realize the importance of a solid qualified pre-approval versus a pre-qualification letter. One of the biggest reasons why there is stress during the mortgage process is that a loan officer issued a pre-approval letter without properly qualifying the borrowers. This is also one of the biggest reasons for a last-minute mortgage denial by mortgage underwriters. Pre-approval letters can be issued by loan officers in less than an hour.
The loan officer needs to diligently thoroughly review every aspect of qualifying borrowers prior to issuing a pre-approval letter. Buying your home is an amazing experience, but getting a mortgage can sometimes feel overwhelming.
A fast pre-approval home mortgage can boost your confidence, allowing you to shop for homes and dream freely. In this article, we will focus on what fast mortgage pre-approval is, what factors affect the speed, the lenders fast mortgage pre-approval offers, and how to optimize the process.
What Is A Fast Pre-Approval Home Mortgage?
A fast pre-approval home mortgage is a preliminary estimation that lenders can do on your ability to borrow within an hour. It differs from a full mortgage approval in that a pre-approval does not consider all the financial information. It only does a financial profiling by estimating the credit score, income, and debts to guess how much you can borrow. Home buyers consider this an essential step as it determines whether the borrower is serious about the loan.
Why Pre-Approval Matters In Home Buying
“Gone are the days when buyers don’t consider pre-approval letters. The good news is that pre-approval enhances your offer when it is competitive. Since they have the monetary capability, sellers only want to deal with buyers with letters. A Pr. Approval done quickly also saves time, allowing buyers to purchase the property they have always dreamed of.
How Fast Can You Get Pre-Approved?
“Some lenders are willing to provide pre-approval letters within an hour. This is made possible by having online platforms and automated systems. However, it also comes down to your level of preparation and the bank’s effectiveness.
Gather Basic Documents
It is crucial to produce the following to be ahead of the rest.
- Proof Verses: Pay stubs, W-2, or the Tax Returns.
- Credit Report:
- Identification: This can come in the form of a formally recognized ID
- Accounts: Have up-to-date statements to show your savings and other valuables
- Debts: A complete report showing the rest of your balance, either the loans or credit cards.
More often than not, the process can go significantly faster with readily available, digital copies.”
Go For The Online Lenders To Save Time
Online lenders have automated systems to deal with multiple applicants simultaneously. Companies such as Gustan Cho Associates Mortgage Group and GCA Mortgage Group offer fast pre-approval home mortgage to applicants and sometimes close transactions in less than an hour. A traditional bank’s manual underwriting will ensure a longer turnaround time.
Evaluate Your Credit Score Before These Steps
Quick pre-approval relies on the borrower’s sound credit score. Check your score, and if you have a credit report, resolve any discrepancies to avoid delays.
Things that Can Slow Down Your Receipt Of Pre-Approval
Get a fast pre-approval home mortgage within an hour by understanding the procedure, essential documents, leading lenders, and methods to expedite your home loan pre-approval. While a lender can promise a one-hour pre-approval, many factors can complicate and determine the time you spend waiting for the letter.
Credit Rating And Other Finances
Lenders use your credit score as an early indicator to determine a risk level. A score of at least 700 will qualify you for faster approval, as the lender will need to spend a whole lot less time on your file. If your financial background is complicated, such as being self-employed, then you might spend longer waiting for approval.
Using Lenders Who Rely on Lender Technology Digital Processes
Lenders with an advanced and streamlined digital platform spend a lot less time approving an application. Traditional lenders’ manual real-time review process extends the waiting period.
The Time It Takes to Complete The Application Process
Sometimes, a lower-than-expected number of completed applications causes delays. All documents and relevant information must be submitted on time to avoid losing time with the lender.
Top Lenders for Fast Pre-Approval Home Mortgage
The right lender is key for pre-approvals, and considering their speed and reliability is important for choosing from the top lenders.
Online Platforms for Fast Pre-Approval Home Mortgage
Due to Rocket Mortgage’s streamlined online process, you can complete a pre-approval application in as few as 60 minutes and receive a pre-approval.
- Pre-approval applications with fewer documents can be filled out and submitted to Better.com for fast pre-approvals.
- They offer a service that matches users to different lenders so they can compare different offers for fast pre-approval mortgages.
Competitive speed can be found at Wells Fargo and Chase for fast pre-approvals since they have invested in digital technologies. Pre-approval applications with documents to be filled out still offer a slower process than online-only lenders.
Misconceptions on Fast Pre-Approval Home Mortgage Loans
The confusion with fast approvals stems from the lack of information about the process. Let us clarify some of these misconceptions.
- Receiving a loan within an hour of applying is impossible, so a one-hour pre-approval is likely inaccurate.
- Lenders access the same information regardless of the speed of the process.
- Credit information, including income and debts, is available regardless of whether the assessment takes one hour or one day.
- Traditional banks excel in speed, which online lenders lack due to the growth of online technologies.
Tips For Attaining a Smooth and Swift Pre-Approval Process
These practical tips maximize your chances of a quick pre-approval.
History of Your Financial Situation
Paying high-interest debts before applying and avoiding large purchases are recommended. A clean financial profile would help speed up the lender’s review.
Utilization of Technological Resources
Pick lenders with streamlined websites. Uploading documents and discussing them via other secure methods can substantially reduce the time required to approve a voiced case.
Examining More Than One Lender
Look for lenders with the best terms and the speediest processes. Examining offers guarantees quick pre-approval, even at better rates.
Careful Analysis By Loan Officer Prior to Issuance of Pre-Approval Letter
It is better for a loan officer to carefully review the loan application, credit report, and AUS Findings and properly qualify the borrowers before even thinking about issuing a pre-approval letter. A pre-approval should never be issued without the loan officer running a tri-merger credit report. The tri-merger credit report needs to be carefully reviewed as to the accuracy of its content.
The Importance of Reviewing The Tri-Merger Credit Report During The Mortgage Process
Lenders use the middle credit score of borrowers as the qualifying credit score. However, just because a borrower has a high credit score does not mean everything is good with the loan applicant. One of the biggest mistakes loan officers make is not thoroughly reviewing the borrower’s credit report. The need to carefully analyze and review the line item per line item. They need to check for credit disputes. Unless the credit dispute is an exempt credit dispute, all disputes need to be removed prior to and/or during the mortgage process.
Credit Disputes During The Mortgage Process
Any pre-approval letter issued with outstanding credit disputes is null and voided. Loan officers should thoroughly interview borrowers when reviewing the credit report. Not all credit items report on credit bureaus. Ask the borrower if they have any public records they have outstanding that are not reporting on the tri-merger credit report. All public records will get discovered when the lender does a national third-party records search.
Documents You Need for Fast Pre-Approval Home Mortgage
Prior to issuing a pre-approval, the loan officer needs to get the following document from the borrower and co-borrowers:
- 30 days of paycheck stubs
- Two years of income tax returns if self-employed.
- Two years W2s.
- 60 days bank statements
- Front and back of drivers license and social security card.
- Social security and pension awards letter if applicable.
Look For Accuracy on Credit Report
The loan officer should carefully review the tri-merger credit report and discuss with the borrower the accuracy:
- Loan officers should carefully interview the borrower and question them about any public records not showing up on the credit report
- Public records such as bankruptcies, foreclosure, judgments, and tax liens sometimes do not report on credit reports
- However, all public records will get discovered when lenders do a third-party national public records search
- Loan officers need to go over line item per line item of the borrower’s credit reports and look over to see whether there are credit disputes
- You cannot have credit disputes during the mortgage process unless they are non-exempt credit disputes
- We will cover what needs to be reviewed and focused on when a loan officer issues a pre-approval letter
There is no reason why a borrower should not close a mortgage loan if they were properly qualified and pre-approved by a loan officer. The mortgage loan should not just close, but should close on time.
Fast Pre-Approval Home Mortgage: How Soon Can I Start Shopping For a Home
The minute you have been issued a solid pre-approval letter, you can start shopping for a mortgage and enter into a home purchase real estate contract. The very first step of your home buying journey is getting qualified and pre-approved for a mortgage. A mortgage pre-approval is when the loan officer has gone over your mortgage loan application (1003), run a tri-merger credit report, went over your gross income and all of your monthly debt, verified your assets and made a determination, and sees you fully qualify for a mortgage loan.
Automated Underwriting System Findings
The loan officer ran your file to the automated underwriting system (AUS) and has an approve/eligible per automated underwriting system mortgage loan approval per AUS. Borrowers do not need to be present to get qualified and pre-approved. It can be done over the phone or via the internet. There are no fees and/or costs involved in getting pre-approved. In the event, that you do not currently qualify for a mortgage, your loan officer will work closely with you in getting you qualified.
Frequently Asked Questions and Answers Regarding Fast Pre-Approval Home MortgagesHow Much Time
Can Be Set Aside For Fast Pre-Approval Home Mortgage?
- If one has the right lender and the required documents, the fastest one can get is an hour, while the slowest is twenty-four to forty-eight hours.
With a Fast Pre-Approval Home Mortgage, Does That Mean That a Home Loan is Guaranteed?
- Pre-approval does not lock you for the loan.
- There’s no mortgage guarantee because a pre-approval is an initial judgment.
- An appraisal of the property and other checks will be done.
Pre-Approval is Possible With Bad Credit, Right?
- However, the process might take longer, and your loan options may be limited.
- Pre-approval is possible, albeit at a much slower pace.
Do Fast Pre-Approvals Never Come At A Fee?
- Lenders rarely charge a fee for pre-approvals, whether fast or otherwise.
- Check with a lender to ensure that there is no surprise charge.
How Long Is A Pre-Approval Good For?
- These letters are typically good for about 60-90 days.
- If you still have not purchased a home after this time, you will likely need to update the pre-approval.
Reasons Why Borrowers Cannot Qualify For a Mortgage Today But Can in a Few Months
The top reasons for borrowers not qualifying for a loan today but will in several months are the following:
- They do not have the minimum credit score requirements
- For example, to qualify for a 3.5% down payment home purchase FHA loan, you need a 580 credit score
- You need a 620 credit score to qualify for a conventional loan
- You normally need 12 months of timely payments in the past 12 months to get approve/eligible per the automated underwriting system
- Gustan Cho Associates has some quick tricks of the trade on helping borrowers boost their credit scores
- There is nothing anyone can do with late payments in the past 12 months
On the surface, a fast pre-approval home mortgage greatly improves home-buying agility. The competitive market reinforces this impression.
Suppose you can prepare documents, identify appropriate lenders, and comprehend the steps needed to obtain a foothold.
In that case, you will be pleasantly surprised at how much time you save. In a single hour, check your credit and compile relevant documentation. Subsequently, vet chosen lenders to identify the best for your objectives. Lenders and the AUS want to see timely payments in the past 12 months to approve a mortgage borrower. It is okay to have outstanding collections and/or charged-off accounts but lenders want to see timely payments in the past 12 months.
