Tips to Get Your Mortgage Application Approved Quickly

/2015/05/approved-300x225.jpgThe process of buying a home involves an array of tasks, right from tacking down a property to getting through the closing. But one of the most time consuming obligations for a home buyer is to have his or her finances in order. The majority of buyers finance their purchase with a mortgage, so it can really help them to know how they can avail a home loan quickly to ensure that the closing takes place on time.
It becomes more important to get a mortgage approved as soon as possible for those planning to buy a home in Nashville. The properties in the region are staying fewer days on the market, meaning buyers often find themselves in the middle of real estate bidding wars. According to the Greater Nashville Association of Realtors, closings in January 2015 were up 11% over closings in the same month last year. The lack of available inventory is putting pressure on buyers to close a deal quickly.
If you are buying a home in Nashville, you must have your finances for two reasons: one – to show the seller that you are a serious buyer, two – to win real estate bidding wars by being able to close the deal quickly.
Here are a few tips for you to ensure that your home deal doesn’t fall through at the last moment just because you failed to meet your financial obligations:
Start your home shopping after being pre-approved by a lender
Earlier, it was enough to get a pre-qualification letter from a lender to ascertain how much mortgage a borrower can quality for. A pre-qualification letter can be obtained without verification of documents. You can get pre-qualified online just based on your income and credit profile.
But with mortgage lending standards tightening, most sellers would want you to be pre-approved. A pre-approval letter is issued by lender after verification of your income documents and credit score. It’s obviously a more authentic way of establishing how much mortgage you can quality for.
There are two benefits of getting pre-approved. First, you would know how much mortgage you are going to get. Depending on your pre-approved loan amount, you can determine your budget and narrow down your search for a home accordingly. Second benefit is that you will already have submitted the majority of documents to a lender for pre-approval, so when you make an offer, the lender will be able to speed up your loan application. It will help you close the deal on time and quickly.
Know about the mortgage approval process and be ready
Before you start looking for a home, you should consult with lenders what types of documents you would need to submit and sign after getting a pre-approval letter. This information will help you deal with your obligations quickly after your offer on a property has been accepted by the seller.
Choose a lender carefully
Not all lenders are the same. Some will unnecessarily take time to process your application, while others will complete the formalities quickly. When considering a lender, always try to get feedback from other borrowers about their experience of working with a particular lender. You can also look for these feedbacks posted online on authentic and trustworthy websites.