How to Get a Home Loan Fast
There aren’t many things in life as thrilling as shopping for a new home. But if you’re like most people, you probably aren’t looking forward to the time-consuming process of applying for a mortgage loan. Here are some easy-to-follow tips to help you get a home loan faster.
Save for Your Home’s Down Payment
Most home buyers will need to make a down payment between 3% to 20% of the purchase price of their home. We recommend establishing a monthly budget to help you save this amount. Consider setting up an automatic deposit of money from your paycheck or bank account to a savings account. If you can’t afford to put down a large down payment on a home, an FHA loan—which allows home buyers to make small down payments—might be right for you.
Review Your Credit Score
Before you begin searching for a house, take some time to review your credit report. Good credit is the golden key that unlocks the best interest rates on a mortgage. Once you know your current financial standing, you can identify ways to improve your score or correct any errors.
Get Your Paperwork in Order
When you apply for a mortgage, the lender will ask for certain financial documents, including your last two pay stubs, most recent W-2, last two years of tax returns, and current bank and brokerage statements. Having these documents ready will help speed up the processing of your loan application.
Get Pre-Approved
Most real estate agents will not work with you until you have pre-qualified for a loan. Mortgage pre-qualification is a reasonably straightforward process, requiring little more than some financial information like your income, your savings and investments, and a credit check. Once pre-approved, you’ll know how much you can borrow and the price range within which you can shop.
Respond to Your Lender Promptly
When you apply for a home loan, respond promptly to your lender’s requests for additional information and return your paperwork without delay. If you do not do so, your lender may not be able to process your loan in time. If that happens, you may lose the home you want to buy and any money you put down as a deposit.
