Getting a home loan is perhaps one of the longest and most complicated processes. You will have to go through a series of paperwork to come to the position where you can ask for aid to buy your next house. So, if every new home buyer has a desire, it is this: To have the mortgages processed in simple and shortcut intervals. Is that possible? Well, an ideal scenario would be not to opt for a mortgage loan in the first place.
But if you still feel that you can not afford a new house without a mortgage loan, you are good to opt for it. Here are three tips that can help you in simplifying the complex process of mortgage loans.
Pre-approval is Essential
The first step you should take is to simplify and speed up the mortgage process to get upfront approval. What this means is you are taking approval to get a home loan prior to actually getting it. So, you may ask: What does it take to get a pre-approval fo0r mortgage? Well, there are a couple of things that you should complete and walk through the process to get to that stage.
To begin with, you will have to submit all your paperwork and documents well before even looking for a house. So, you haven’t decided which house to buy yet. But your credentials are submitted. Once you submit your credentials, the lender will give written approval for a set amount of loan.
As you have this approval handy, you can decide on any home you want to buy and show the approval. This ould, in turn, serve as a guarantee for your finances. As long as your financial situation does not change, you are good to proceed with the approval – as you will keep paying off the loan. Given this convenience of having preapproval, it is a sane decision to get preapproval for a mortgage loan prior to buying a house.
2. Keep Your Financial Records in Proper Order
One of the most neglected steps that speed up a mortgage process is the financial history of the buyer. More often than not, new home buyers do not keep proper track of their finances – the transactions they have made, bills they haven’t paid, loans they have taken, and the list goes on and on. Consequently, this creates problems when buying a new house, especially if you are applying for mortgage loans, which will slow down the process.
Therefore, keep your finances in proper order. Have all your financial records handy. As a result, you will have the mortgage process completed in no time.
3. Electronically Transfer Your Credentials & Paperwork
Some lenders give the option to submit documents electronically. It is convenient for both parties. The home buyer can mail or fax his docs to the lender and he can preserve them upon receipt. Or to make it more easier, you can also send out your credentials via email and other internet means.