The key to obtaining a fast mortgage approval is simple; be prepared before you start the process, and choose an experienced Loan Officer that works for a highly rated mortgage company.
If you follow my advice below, you’ll be able to get a fast mortgage approval and close your home loan in as little as three weeks, possibly sooner (provided your lender can close that quickly).
Know Your Financial Picture
The first thing you need to do before you call for quotes is review your financial picture. That means having a clear idea of everything associated with your finances, income, debt, etc.
Job history and income are a must. Here is what you should be ready to provide to the Loan Officer.
- Name of employer
- Job title
- Address of the employer and contact number
- Number of years employed with current employer
- Number of years in your current line of work
If you are Self-Employed, then you’ll want to have the following information.
- Name of business
- Address and contact number for your business
- The number of years you’ve been in business
- Net income you received in the previous two years
If you are Retired, then you’ll want to have the following information ready when you call the Loan Officer for a quote.
- Number of years retired
- Annual pension income (if applicable)
- Annual social security income
- Annual investment income (if applicable)
- Annual interest income (if applicable)
If you own additional property, make sure you know the following information when you connect with a Loan Officer.
- Complete address of the property
- Monthly rent
- Annual property taxes and insurance
- HOA dues (if applicable)
- Net income reported to the IRS
- Copy of the lease agreement you have with the tenants
Having this information is critical before you start calling around for mortgage quotes.
Know Your Credit Rating
When underwriters evaluate your credit risk, they are mainly looking at your credit rating and your Debt-To-Income ratio.
When it comes to your credit rating, be prepared to let the Loan Officer know if you have any of the following on your credit report.
- Late payments
- Credit cards with balances above 50% of their limits
- Collection accounts
- Accounts that have been charged-off
- Judgments and/or Liens
- Bankruptcy
This is all key information the Loan Officer needs to know before you complete your loan application.
Complete An Online Application
Most mortgage lenders have an online mortgage application you can access 24/7. It’s much quicker to complete the online application instead of completing it by hand or scheduling a time to complete it with a Loan Officer.
The information needed is fairly straightforward; an applicant can usually finish the process in ten to fifteen minutes.
Have Your Docs Ready To Go
One of the most significant delays to a fast mortgage approval is obtaining the required documentation from a loan applicant in a timely manner. Knowing what documents you need to purchase a home only takes a few minutes to review.
And if you are refinancing a mortgage, then spend a few minutes reviewing the documents an underwriter needs when you refinance.
If your documentation is electronic, set up a folder on your computer with the documents you need to send to the Loan Officer. If you have paper copies, create a file folder with your documents and consider scanning them to your computer. Electronic processing is much faster when getting a fast mortgage approval.
Send In Exactly What’s Needed
You’ve applied for the loan, and now it’s time to send in the necessary documentation. When the Loan Officer requests documentation, send in exactly what is requested, not your interpretation of what’s needed. If you have questions, be sure to ask for clarification rather than just sending in an alternative to what is requested.
For example, when a Loan Officer requests your tax returns, don’t just send in a few pages of your tax return. Send in the entire tax return, all pages, even if you think it’s unnecessary. And don’t blackout any information because the loan officer will only request you resend the documentation with nothing blacked out.
If you receive a W-2 and the Loan Officer asks for last year’s W-2 don’t send in the first page of your tax return as an alternative. If you can’t locate your W-2 then reach out to your employer for a copy.
Another example is bank statements. Let’s say you are looking to buy a home and have money saved for a down payment and closing costs.
The Loan Officer will request copies of your two most recent bank statements where your funds for the down payment and closing costs are deposited. Ensure you send in exactly what the Loan Officer asks for, two months of statements.
All pages need to be included, even if they are blank. Not an activity summary or a screenshot of your account balance. Just send in exactly what’s asked for to put you on the right path for a fast mortgage approval.
If you are looking at Bank Statement Mortgage, then you’ll want to gather your most recent twelve or twenty-four months of bank statements, and the same rule applies; all pages, front and back of each page (even if it’s blank).
Bottom Line
Being prepared is the key to a fast mortgage approval. As someone with 17+ years in the mortgage industry, I can tell you from experience that things can move quickly when a client is prepared.
The second most important factor to a fast mortgage approval is working with a responsive Loan Officer at a highly rated mortgage company that can quickly approve your application.
