Whether it's a move to a new city or just a hot real estate market, sometimes it makes sense to purchase a home quickly. For those who are financing their future home, getting loan approval quickly is a must whenever time is a factor. Not getting financing approved quickly can mean missing out on a home that's a great match. There are a few things that can be done in order to ensure quick or even same day loan approval. Here are three tips for getting a mortgage loan approved as soon as possible.
Know Credit Score
Credit scores have a major impact when it comes to getting approved for a mortgage loan. A score under 620 makes it difficult to get approved while a score over 740 will qualify many applicants for the best interest rates from most lenders. Having this information on hand will help loan seekers know what their chances are for getting a fast loan approval. The higher the credit score, the easier and quicker it is to get a home loan.
Bring Cash To The Table
When it comes to down payments, many potential homeowners prefer to only put down the minimum needed. However, a higher down payment may actually help speed up the mortgage approval process. The more cash put down on the home, the less financing needed. A 20 percent down payment is ideal for most lenders. With 20 percent saved up, lenders are far more likely to approve a loan. A down payment of 20 percent or more also means that private mortgage insurance is not needed and can also alleviate other upfront fees. Bringing cash to the table when discussing a mortgage with a lender can make it much easier to get a loan approved quickly.
One issue that many home buyers run into is that they fall in love with homes that they cannot afford. Getting a loan pre-approval is a great way to ensure that this doesn't happen. Getting pre-approved is relatively easy. Home buyers simply send their financial and personal information to the lender, or lenders, of their choice. They then send back a letter of pre-approval with the amount that they are approved for and the interest rates that they will be paying. Once the buyer finds a home they are interested in, the process of getting the loan is often far quicker whenever they have been pre-approved.
Purchasing a home quickly can be a hassle. Getting financed can take a few days or even weeks. However, there are a few things that can speed up this process. Buyers should know their credit scores before applying. The higher the score, the faster the approval in many cases. Higher down payments can also make getting approved for a loan a quicker process. Pre-approval for a mortgage is also a great option. It doesn't always mean that a loan will be approved quickly but it can help prevent potential home buyers from looking at homes that they cannot afford.