Aggressive mortgage loan programs
If you need a quick mortgage approval and a fast closing, there are mortgage loan programs that will make a two week closing possible. There are certain credit, debt to income ratio, and other requirements but it can be done on both FHA mortgage loan programs and conventional mortgage loan programs.
Credit scores and debt to income ratio minimum requirements for 2 week mortgage loan programs
If you need to close your mortgage loan in two weeks or less, you need a minimum of a 640 credit score for you to qualify. If you are seeking a FHA loan so you can utitlize the 56.9% debt to income ratio maximum, your minimum credit score has to be 680. FHA loans do allow open collections but you need fair credit scores and a timely payment history for the past 12 months. Rent verification is required for this two week closing mortgage loan program and a minimum of 3 credit trade lines that have been seasoned at least 12 months. No overdrafts in the past 12 months is allowed. A five dollar overdraft from six or more months ago can mean a mortgage loan denial. You need to discuss overdraft issues with your loan officer prior to submitting your loan application to see if there are any loopholes in where the loan officer can not use the bank statements where you have overdrafts.
Prepare and submit all of the necessary required documents all at once and not piece meal
If you need to close your mortgage loan in two weeks or less, you need to cooperate with your mortgage loan originator and submit every document he or she requests all at once and not piece meal. There are certain documents that will be required by your mortgage loan originator such as two years tax returns, two months bank statements, recent pay check stubs, two year W2s, asset information such as IRA, 401K, and securities accounts, and other documents such as bankruptcy, divorce, foreclosure, child support, and other financial and credit information. Any delays in submitting these forms will cause delays in the underwriting process. When you submit these documents, make sure you submit every single page, including blank pages, or the underwriter will ask for these missing pages and that will cause a delay.
Appraisal need to be ordered as soon as possible
The appraisal process normally takes a week or more. Make sure that the home appraisal gets ordered as soon as possible. While the underwriter goes through your mortgage loan application, the appraisal can be worked on. After the appraisal is completed, the underwriter needs to review the appraisal and goes through an appraisal review by the lender which can take a day or two.
Clear to close
Once all of the conditions asked by the underwriter have been met and the appraisal review has been signed off, the mortgage lender’s senior underwriter will issue a clear to close, which means the lender is ready to fund your mortgage loan. Your mortgage broker will make arrangements with the title company and arrange a proper mutually benefiting time for a closing where ownership and keys exchange hands.