You found the Atlanta home you want, you made the offer, the offer is approved, the mortgage application is complete and all the necessary paperwork is in motion … and now it’s time to “hurry up and wait.” This in between time can be excruciating even for veteran buyers, but even more so for first-time homebuyers. This is especially true if the loan processor keeps calling to ask for additional information. Unfortunately, final approval cannot be rushed; however, there are definitely some things you can have in place to keep the process from being slowed or delayed. Here are five things that can help you get final mortgage approval as quickly as possible.
1. Pre-approval
If you get pre-qualified and pre-approved for your loan before starting your home search, you are several steps ahead of the game because a lot of the preliminary work has already completed. Pre-approval is not a guarantee of a loan, but it does mean the mortgage company has reasonable confidence that you qualify for a certain loan amount. Stay within that amount and your chances of quicker approval go up.
2. All requested paperwork
Many homebuyers think they are waiting on the mortgage company when, in fact, the reverse is true. If the broker or lender asks you to provide certain documentation and you forget or procrastinate, this can delay your approval. The loan processor requests this documentation to effectively build a case for the underwriters that you are a good candidate for the loan, so when you’re asked to do it, provide thorough information as quickly as possible.
3. Stable credit
A few days before closing, the lender will run your credit one more time to make sure there have been no significant changes. Avoid taking out any loans, charging up your cards or making big purchases during this time — don’t even apply for a new loan. Any changes to your credit score, even a credit check, can raise a red flag. It might not derail your loan (unless the change is significant), but the lender will request more information about what happened before giving you final approval.
4. Job and income stability
If at all possible, do not change employers while your mortgage loan is in process. Major life changes like these — especially those that impact your finances — can cause significant delays or hiccups in your loan approval. Wait until after you close before switching jobs.
5. Stable, healthy bank balances
Your bank accounts should stay at a consistent level during the approval process. Other than your normal inflow/outflow of paychecks, avoid making large cash deposits during this time; it raises questions with the lenders about where the cash came from – there are often rules about accepting down payment gifts from relatives, for example. Additionally, if you make a large deposit by check, send a copy of the check to the lender so they can trace the source of the funds. Any hint of suspicion may cause the lender to delay approval until their questions are answered.
Delays in loan approval can happen for many reasons beyond your control, but with these five factors in proper order, you’ll have done all you can on your end to encourage quick mortgage approval. When you’re ready to look for an Atlanta home, call Atlanta Fine Homes Sotheby’s International Realty at 404.948.4812.