In this blog, we will discuss and cover on tricks and tips in getting one day mortgage loan approval. The mortgage process does not have to stressful if the borrower is properly qualified. There are many mortgage loan applicants who get issued a pre-approval letter within 30 minutes once they contact a loan officer. Properly qualifying a borrower will take more than 30 minutes and there should be no rush in qualifying a home buyer.
The Importance of a Solid Pre-Approval
A solid pre-approval should not be issued until a mortgage underwriter has signed off on the file. Over 75% of our borrowers at Gustan Cho Associates are folks who have gotten a last-minute loan denial and/or are stressing over the loan process with their current lender. The only reason for last-minute loan denials or due to stress during the loan process is due to the fact that loan officers did not properly qualify borrowers. This is not borrowers fault but rather the fault of the loan officer.
When Should Loan Officers Issue Pre-Approval Letter
A pre-approval letter should not be issued until the loan officer is confident and sure that the loan will not just close, but close on time. There are tricks and tips on how to get a One Day Mortgage Loan Approval with very few conditions and close a home loan on time. In this article, we will discuss and cover Tricks And Tips In Getting One Day Mortgage Loan Approval.
Step One Of Mortgage Process In Getting A One Day Mortgage Loan Approval And Pre-Qualification Step
Here is the first step in the mortgage loan application and approval process and the timeline for most mortgage companies: Borrowers need to complete 1003 mortgage applications whether online or the loan officer can take it over the phone. 1003 should be carefully reviewed for accuracy. The loan officer will run credit and run the file through Automated Underwriting System.
Mortgage Documents Required
Loan Officer should gather Documents Required To Process Mortgage Loan and input to the Loan Officer System (LOS). A pre-Qualification Letter can be issued. There is a big difference between pre-qualification and pre-approval. A pre-qualification is the initial step of the pre-approval process. A pre-approval is issued after a mortgage underwriter has fully reviewed the mortgage borrower’s file and supporting documents.
Mortgage Pre-Approval By Underwriter
A pre-approval is issued after the mortgage underwriter has reviewed the borrower’s file and supporting docs. Every lender has different ways of pre-approving borrowers. Many lenders issue pre-approvals on pre-qualified borrowers. With us at Gustan Cho Associates, pre-approvals are issued after the underwriter has reviewed the following:
- Overall borrowers mortgage application
- Borrowers credit scores and credit report
- Borrowers AUS Findings
- Supporting Mortgage Loan Documents To Process Loan
- Verification Of Employment will be executed on borrowers with overtime income, bonus income, and/or part-time income
- Credit Report will be thoroughly reviewed and make sure there are no credit disputes
- Credit Disputes will normally suspend and halt the mortgage process thus causing delays
Once a mortgage underwriter is confident that the mortgage loan will close, a pre-approval letter is then issued.
Shopping For Home
Borrowers can start shopping for a home and can confidently enter into a real estate purchase contract with an iron-clad pre-approval by Gustan Cho Associates Mortgage Group. Once the underwriter signs off on pre-approval letter, the borrower can go and shop for a home. Get real estate purchase contract signed by both the buyer and seller. Once the home buyer submits the executed real estate purchase contract to the loan officer, the time clock starts. Since the overall file has been initially scrubbed, it gets packaged up by the mortgage processor and make sure that all docs are updated. Processing normally takes two to three days at most mortgage companies. Once mortgage application has been fully updated and processed, appraisal gets ordered. It gets submitted to underwriting once the appraisal gets back.
Conditional Loan Approval By Mortgage Underwriters
Appraisals get ordered after the home buyer gets the home inspection report back. Most underwritings take a solid week or more. Once we get the appraisal back, the processor submits borrower’s file to underwriting. The underwriter has already reviewed the file so normally we get a one-day mortgage loan approval. Before the end of two weeks, borrowers should get a mortgage conditional approval. Conditional approval gets back to the processing department. The processor will work with the borrower and loan officer to get the necessary conditions to satisfy all the conditions.
Typical Conditions By Mortgage Underwriters
Some conditions may be letters of explanations, updated bank statements, updated paycheck stubs, verification of employment, insurance information, and appraisal:
- All conditions get submitted back to underwriting for a clear to close
- Once underwriting approves the conditions, it gets sent to Quality Control for final review
- Once the mortgage application passes Quality Control, the mortgage application is sent back to underwriting for clear to close
- The loan gets clear to close which means the loan is ready to fund by the lender.
- Closing Department prepares closing docs
The mortgage company arranges with the title company to arrange a time and date for closing.
One Day Mortgage Loan Approval Versus Stress During Mortgage Process
There should be no reason for a last-minute loan denial or stress during the mortgage process if the borrowers are properly qualified. One day underwrite and mortgage loan approval can happen if the following steps are taken during the pre-qualification and pre-approval process:
- 1003 is accurate
- Check for credit disputes on the credit report
- Get Verification Of Employment on borrowers with irregular income, part-time income, overtime income, bonus income, commissioned income
- A thorough review of asset accounts
- No overdrafts in the past 60 days.
- Submit complete necessary documents such as two years of tax returns, two years W2’s, 60 days bank statements, most recent bank statements or bank print outs, bankruptcy papers (if applicable), foreclosure paperwork (if applicable ), and other requested documents.
- Signed 1003 mortgage application.
If the borrower cooperates and gets me the necessary documents, a one day underwrite and loan approval and fast closing should be no issue. The one day mortgage underwrite and approval is for conventional loans, FHA loans, VA loans, USDA Loans, NON-QM Loans, and Jumbo loans. Homebuyers who need to get qualified with a direct lender with no lender overlays, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. Mortgage Loan Applicants who are purchasing or refinancing in states we are licensed in can APPLY NOW.
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