Tips in Getting Faster Mortgage Approvals and Closing on Time
How do I get a fast mortgage loan approval and close on time?
This article covers tips in getting faster mortgage approvals and closing on time.
We will cover the following bullet points in this article:
- Delays in the mortgage process
- The mortgage pre-approval process
- How solid is your pre-approval letter
- Mortgage processing and underwriting
Borrowers should not stress during the mortgage process. . There is no reason why there should be stress during the mortgage process. There is no reason why the closing date needs to get delayed. Follow these tips for a smooth and timely closing.
The Mortgage Approval Process
There are many horror stories by homebuyers where they are stressing during the mortgage process or getting last-minute loan denials. Over 75% of our borrowers are folks who are currently in a mortgage process and either gotten a last-minute mortgage denial or are stressing.
Most of our borrowers have been issued pre-approvals by other lenders and have real estate purchase contracts. Many have home appraisals ordered. Some have passed their closing dates and are on multiple extensions. There is no reason why a mortgage loan cannot close in 30 days or less.
There are tips in getting faster mortgage approvals and avoiding stress during the mortgage process. We will go over reasons why borrowers are not getting faster mortgage approvals and last-minute mortgage denials.
The Importance of the Borrower’s Cooperation with Loan Officers
Part of getting faster mortgage approvals requires the cooperation of borrowers.
There is a lot of paperwork that borrowers need to gather during the mortgage process. Gathering required docs for lenders can be like working on a jigsaw puzzle. When the loan officer request 60 days bank statements, all pages needs to be provided including blank pages.
Leaving out a blank page on docs requested will cause delays in the mortgage process. If mortgage processor request certain docs, need to get the docs over the same day. Procrastinating will definitely cause delays and stress during the mortgage process.
Documents That May Cause Delays In Mortgage Process
Lenders will require 60 days bank statements.
Mortgage Underwriters will frown upon overdrafts in bank statements. Overdrafts can be deal killers for most lenders. However, GCA Mortgage Group is very aggressive and understanding when it comes to overdrafts.
Try not to use multiple bank statements prior to starting the mortgage process. Borrowers should only have one bank account and not over a dozen account. Cash deposits is non-existent in the mortgage world. All cash deposits in the past 60 days need to be sourced.
Make sure not to make any irregular deposits during the mortgage process.
If the borrower has mattress money (cash), deposit cash as soon as possible to the bank account and let it season for 60 days.
Cash To Close And Debt To Income Ratios For Clear To Close
Borrowers need to make sure not to spend the cash to close and/or reserves required prior to the clear to close. Do not open new credit accounts. Do not purchase high ticket items. Many home buyers get excited at the thought of moving into the new homes that they often apply for zero-interest furniture and appliance credit.
Mortgage underwriters will not issue a clear to close if the cash to close is short or debt to income ratios are higher than allowed due to increased credit card balances. This can delay the mortgage process and delay the closing date. Underwriters will want updated bank statements and will do a credit pull prior to issuing a clear to close.
Homebuyers who need to qualify for a mortgage and getting faster mortgage approvals is important, contact us at Gustan Cho Associates Mortgage Group at 262-716-8151 or text us for a faster response. Or email us at [email protected] We are available 7 days a week, evenings, weekends, and holidays.