The time it takes to get mortgage approval varies greatly, anywhere from two to six weeks. Generally, once approved, your mortgage is valid for around six months. Here are a few tips on getting approved for a mortgage fast and efficiently.
Once you’ve found a low mortgage rate, you’ll want to lock it in so that it doesn’t go up before you close on your loan. To do that, you’ll need to understand rate locks and compare different options with the help of FHA Loan Calculator. Then, choose the right rate lock term for your needs.
Improve your credit score
The first thing you can do to increase your chances of both getting a mortgage and speeding up the process, while you’re at it, is to improve your credit rating. For many, this can seem like a daunting process, but it’s well worth the hard work and patience when it does finally come time to apply for your mortgage.
First, it’s imperative that you check your credit rating with services like Equifax’s online credit report, then take the necessary steps to improve your rating. For example, you can pay off credit cards and loans with the highest interest first. Another good idea is to pay more than the minimum required payment each month. Even a little can go a long way! Oh, and final recommendation: if possible, don’t apply for more credit, even small personal loans.
Online mortgage application
Cut out endless time-consuming paperwork. With an online mortgage application with a broker, you can save an enormous amount of time spent going back and forth with a traditional financial institution. Mortgage brokers need a Certificate IV in Finance and Mortgage Broking to practice, so you can be assured that a good mortgage broker will assist you with all necessary documentation, which is all processed online.
An online broker can quickly fit you with the right lender that best suits your needs and circumstances. With the use of intelligent automated algorithms, every part of your mortgage application process is not just fast but transparent and accurate.Calculate how much you can borrow with Trussle’s MIP, they will submit your application to dozens of lenders and will aim to have a decision within five days. These online processes are also incredibly accurate, with less room for human error.
Prepare in Advance
Before submitting your online mortgage application, be prepared and get yourself in the best position possible:
- Have all documentation ready in advance, including bank statements for the proceedings six months, evidence of income, proof of any other income, and identification.
- Savings for your deposit is difficult, but how much you can put down will also affect how fast your mortgage approval will be. You can find mortgage options with as little as 8%, or less, required down payment, but to put yourself in the best possible light, try to save a down payment of 20%. Decide on what you need to save to reach this goal, research the best money-saving app for you and start saving every month. Be sure to check out comprehensive reviews by independent sources such as DollarSprout, which summarize some of the best money-saving apps on the market.
- Use an online mortgage calculator and see what you can reasonably afford. Remember, an online calculator will give an estimate of what you could potentially borrow but speak with the broker, who can assess precisely how much you could borrow.
Of course, other factors will contribute to how quickly you will be approved for a mortgage, like your employment situation or the type of property you want to buy. However, with the above tips and tricks, there are clear ways you can take positive steps to streamline the mortgage process.