Buying your first home, or fifth, for that matter, can be an exhilarating experience. But searching for the perfect home is just the first step of the process, especially if you are looking to buy a home on a mortgage. Here are some tips to help you get your mortgage loan application approved faster.
Check Your Credit Score
A good credit score helps you get a loan at a competitive interest rate, thus reducing the cost of the loan. So, don’t put off checking your credit score. In fact, it should be one of the first things you do since doing this will give you enough time to work on improving your credit score.
Save for The Down Payment
Most traditional mortgage lenders will require you to put down a 20% down payment. So, make sure to start saving up for the down payment. In addition, it’s also a good idea to put away some extra money to pay for the closing costs and any other expenses that may spring up when you close your mortgage loan. If a 20% down payment seems too much, you may want to look into getting an FHA loan.
Gather Your Documents
Some of the documents you will likely have to submit include your pay stubs, W-2, bank account statements, and recent tax returns, among other things. Keeping these documents ready beforehand can help accelerate the application process.
Compare Various Loans
To get the best loan, it is important to compare mortgage loans offered by different lenders.
Get Pre-Qualified for A Loan
Once you’ve shortlisted a few different loans, you should apply for pre-qualification. Once you get pre-qualified for a few different loans, you’ll have a better sense of the cost of the loan and how much you can borrow.
Avoid Doing Anything that Will Affect Your Credit Score
During the mortgage application process, it is important to not do anything that can adversely affect your credit score. This includes not taking on a new loan or credit card, not quitting your job, and not missing any bill payments.
Now that you know how to get a home loan quickly, you can go ahead and put these tips into practice!