Lenders evaluate the application and check all the details mentioned in the application. This evaluation process sometimes can take more than the usual time, which is something between two weeks to six weeks. The mortgage process may also depend on several factors. If banks are not satisfied with the documents submitted, they ask the applicant to re-submit the document. Another step in the mortgage process approval involves survey of the property by bank representatives. For completing the mortgage process, lenders take into account the report of the survey. After applying for a mortgage loans, applicants definitely wish to hear the news of loan approval from the bank soon.
What is Mortgage Loan?
A mortgage loan involves offering security in the form of property to a lender for availing a loan. All the mortgage loans are secured loans because there is collateral offered by the individual submitting an application for the loan. This collateral can be sold off by the lender in the case of a borrower failing to repay the loan. Mortgage loan interest rates are usually lower than other loans. For getting a lower mortgage loan interest rate, you should be looking to maintain a high credit score. Mortgage loan rates are also affected by the type of interest rate chosen by the borrower. Lenders reduce interest rate if you opt for flexible mortgage loans interest rate.
Making A Mortgage Loans Application
To help you out with mortgage loan application, here is an explainer about mortgage loans application and its processing:
- Start with submitting an application: generally, applicants contact lenders before starting an application. This means that probably lender has already conveyed to you about your eligibility for the mortgage loans. To begin with the formal process, you are required to submit an application and provide the required documents, which may include documents like identity proof, address proof, salary slips, bank statement, etc. Additional documents can be asked by banks.
- Application processing time: the average mortgage loan application processing time can be between two to six weeks. This average time, however, can differ, depending on the lender. For some applications, lenders can take a longer time, too. Also, if all the information and documents are submitted carefully, the mortgage application can be approved within one week as well.
- Reasons of delay in application processing: certain reasons can delay the application processing, and thus mortgage loan approval. A common reason of delay is the applicant not submitting the required documents or submitting documents that cannot be properly verified by the lender. Applicants can avoid this delay by contacting the lender and getting all the information from them about the required documentation.
How to Shorten Mortgage Application Approval?
With proper information and some tactics, it is possible to speed up the process of mortgage loan application approval.
- Taking services of a mortgage loan broker: applicants can hire mortgage loan brokers. These brokers can make the application approval process easier for you. Brokers enjoy access to several lenders and can speed up the loan approval process. They help in the application process as well. Also, whenever an issue emerges during the process, the broker can get it resolved quickly. Because of their understanding and familiarity with the entire process, they can really shorten the loan application approval timeline.
- React to the requests of your lender: during the process of mortgage underwriting, lenders can contact you for missing or additional information. As an applicant, you should respond to these requests of your lender quickly. The sooner you resolve the queries, less time it takes for the lender to move your file, approve the mortgage application and complete the mortgages process.
- Stop enquiring and availing new borrowings: once you submit a mortgage loans application, you should ideally stop enquiring about new loans. For instance, if you enquire about a car loan or a personal loan during this period, your credit score can summer and go down. Similarly, availing a personal loan or even enquiring about the loan can affect your credit score. These financial activities of yours do not send a favourable signal to the lender that is considering your application. If your debt-to-loan ratio goes down because of these activities, lender will take additional time to process the application. They may also reject the application.
It is important for a prospective mortgage loans borrower to first know what is mortgage loan. Once you familiarize yourself with mortgage loan, you will comfortably be able to supply the information and documents asked by the lenders, which ultimately can determine the time within which the mortgage process is completed. Further, mortgage loan calculator can be used to know the eligibility and carry out relevant loan-related calculations. If you use above-mentioned information and tips, you can get your mortgage loan approved quickly and without facing any hassle.