When it comes to securing a home loan, you already know that your credit has to be in good standing; the better it is, the better a loan you’re going to be able to seek approval for. While it’s important to take a good look at your credit score and dispute any discrepancies that may occur, this should be done two to three months before you even apply. Once you start applying for homeowner loans, you’re going to naturally want things to happen as quickly as they can. In order to speed up the process, think about these three tips and how you can get your financial institution working for you.
Tax Documentation
Did you know that your tax information is a necessary piece of the homeowner puzzle? When you apply for your home loan, your lender will order your tax transcripts for at least two years, sometimes more. You can speed the process slightly by having these documents ready and attached to your application. This way, you’re being proactive in order to avoid lengthy waits while your lender verifies your eligibility.
Source Your Funds
If you’re applying for a home loan, your money situation is going to be transparent to your potential lenders. You’re going to have to document and source each large deposit that is made, including gifts. If your down payment is coming to you as a gift in full or partially, you will likely need to provide contact details for the person responsible. They may also be subject to fund sourcing investigations to ensure all the money in the transaction is on the level. This is the most common reason that funding efforts take longer than they should, so be prepared to show your financial paper trails at will.
Keep Documentation at the Ready
It’s just good practice to keep all of your information at the ready to avoid delays in the application process. Gather everything that you can about your income, budget, pre-existing assets and your credit. Present your package to your potential lender and ask if there is anything else that they may need from you in order to help speed the application process. By being forthright and proactive, you demonstrate your commitment to responsibility and encourage your lender to spend more time ensuring that your account is handled with the most attentive care available.
This guest post is from Allison with HomeLoans.org.