Mortgage lenders grant lower interest rates to buyers who can close on a house quickly, so give yourself every advantage possible.
It would be silly to do otherwise.
According to mortgage software company Ellie Mae’s most recent Origination Insights Report, U.S. lenders needed an average 43 days to approve a mortgage loan for last month’s home buyers.
It’s a +2 day change from month prior.
Needed this amount of time to get a mortgage approved might seem fast to you, or slow. But, to a seller, you can be sure it feels slow.
Sellers typically prefer buyers who can close on a house quickly because longer closings are associated with “problems”. Buyers who accommodate quicker closing can give themselves a competitive advantage.
So, if you have an interest in helping your loan get approved more quickly, here are five concrete things you can do:
- Set aside income documentation and bank statements in advance
- Ask your lender for a “test run” on your approval
- When your phone rings, pick it up
- When your email dings, answer it
- When your text messages buzz, don’t leave them on read
These phone/email/text points are especially important.
When you buy a house, it’s a team effort to get you into your new place and you’ll hear from your team a lot throughout the journey. Your lender, your real estate agent, your insurance company — everyone will need to talk with you at some point.
Be available because when somebody calls or emails or texts, it’s because they need your input to finish whatever job they’re doing for you.
Respond quickly, get approved quickly.
Just by responding to your team, you can reduce the number of days needed to approve your loan by two weeks or more which, by the way, might also get you access to lower interest rates.
Are you a first time home buyer?
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When your lender says, “you have to act quickly” is not some high-pressure sales tactic meant to make you feel fear. It’s the truth.