Getting a home loan through processing, underwriting, and closing is possibly one of the most frustrating things you will do in your life. It is not uncommon for a loan to take two to four months to close. I remember the days when everyone thought 30 days was too long!
I am hoping the information here will help you get all your stuff in one bag before you even apply for a mortgage. After you have applied, a sharp loan office can also do many things that will help speed things along before your file actually goes to underwriting.
The first thing you should do as a home buyer is pull all three of your credit reports. You also need to know what your credit scores are. Do your research about credit guidelines and try to get your credit in order if it is not. Do your research, ... know what you are up against. A great place to start is here: mortgageunderwriters.com. They have other sites for more detailed guidelines focused at different loan types. Learn as much as you can and compare the information to your reports.
Then, based on everything you have learned try to decide which loan is best for your situation. Questions you should ask yourself are:
- How much do I have for a down payment?
- What is my DTI?
- Should I pay off some bills first?
- Is my credit score high enough?
You should also watch this short video so you can have documentation ready if you need it. Your loan officer should be looking out for this stuff but just in case, well, ... you will know what you need.
So, if you have done your research, pulled your credit, and have your documentation together your loan has a better chance of being underwritten smoothly. Of course these are not all the things that could delay underwriting or a closing. There is sooo much more, and much of which you have no control.
We wish you the best and remember if you have questions, just send it to us at email@example.com