Applying for a mortgage involves many different components to keep track of. Although that might seem overwhelming initially, applying for a mortgage does not need to be a very stressful process. Getting organized ahead of time can help you save time, not just when applying but also during the processing stage.
With some initial groundwork, you’ll experience a smoother mortgage application process and potentially experience fewer delays from application to closing. We’ll walk you through how to improve your mortgage application in this article and share some top tips to help make the process easier:
Get Documents in Order
The best way to improve your mortgage application is to start with getting all your documents and pages in order. That tends to be the main reason for delays with lenders, and it can save you a lot of headaches down the road. When putting together your application, make sure to include all documents requested and do a check periodically to make sure nothing is missed.
Also, make sure to include all pages of a statement – yes, even the ones that say “intentionally left blank.” Keeping those pages helps underwriters evaluate your application since they don’t need to worry about missing any key information on pages that you did not include. This way, they have the complete picture and can start working on your application immediately.
As you work through your mortgage application, make a checklist of what needs to be included and start pulling all of that information into one central folder that you can print as needed to add. Putting everything in one place before starting your application is the best way to ensure everything is included.
Ask Questions Early and Often
An often underutilized resource, your loan officer can actually help you with a lot more than you might initially think! Your loan officer is there to help you with the process, so engage with them and don’t hesitate to reach out. They can help provide information around the application and process and can be a really valuable part of the home buying or refinancing experience. When in doubt about the application, reach out to your loan officer with questions.
That can include anything from whether clarifications are needed, if a specific document will fill a certain requirement, and anything else that pops up. Financial documents contain a lot of terms and language you may not encounter on a regular basis. If any of these terms cause confusion let your loan officer know. And of course, always ask sooner rather than later!
Loan officers often work with multiple people, and they can get busy…which can be stressful when you’re just about to submit the application but need help. So start working with them early, and make them your first point of contact for questions.
Working with your loan officer is also crucial when it comes time to sign documents. Remember, don’t sign anything you don’t understand. If something doesn’t feel quite right, or you’re just not sure about something, you should reach out to your loan officer. He or she is here to help, to cut through any confusion, and make sure that everything is going smoothly. If they are unavailable they will generally designate an alternate point of contact for you to reach out to you – at City Lending you have an excellent team on your side!
Be Consistent With Information
Another way to improve your mortgage application is to ensure that you are providing consistent and necessary information. The application itself means pulling together a lot of different sources, and it can often get confusing trying to figure out what to include and what to exclude. While sending over everything you have to make the process easier might seem tempting, that can do the opposite! Sending more than what is required can cause delays and slow down the entire process, so avoid that to improve your mortgage application.
In fact, too many delays could mean moving back your closing date, which of course, no one wants. So before trying to add all the documents you possibly can to your application, take a step back. As mentioned earlier in the article, provide only the documents that must be included and resist the urge to add additional information that the lender did not request.
Another point to add here is also to be consistent in the information you provide to reduce delays and confusion. For example, don’t use a nickname or family name in one form and use your formal name in another.
Doing so can cause issues for the underwriters reviewing your application, and you will end up needing to make clarifications and corrections, which will slow down the process. To improve your mortgage application, make sure you stick to the name on your driver’s license or government-issued ID to make it easy.
During the mortgage application, requests for additional information may pop up. Even if you have submitted all the documents required, there might still be more clarification or documentation needed before your application can be approved.
While it can feel frustrating, it’s crucial to respond to requests for additional information as quickly as possible. Delays and unclear responses can slow down the entire process, and you might run the risk of having to move back your closing date. Ideally, you should answer any requests quickly and thoroughly to reduce the chances of further follow-up. By doing so, you’ll see that the process goes significantly smoother and faster.
Mortgage applications require so many different types of information that it can be confusing at times trying to move through the process and ensure that you have covered everything. However, keeping in mind the tips we’ve mentioned here, you can see major improvements in your mortgage application. In addition, understanding the expectations around what is needed in the application and getting organized right at the start will make a major difference. To learn more about how to improve your mortgage application and how City Lending can help, get in touch today!
