Beyond slow turnaround time with your documentation, the complexity of your financial situation may also determine how long your loan could take to get approved. That’s why it’s best to start the mortgage application process as soon as possible to ensure that the application process is one less item that you have to do when you find your new home. You don't have to wait until you find the perfect property before you begin the mortgage process – as we talked about in our previous post, getting a pre-approval can greatly facilitate your home buying process!
Here are a few points that can affect your loan’s processing time, along with some actions you can take to help, if needed:
VerificationIn this step, the processor will follow up and verify the information you supplied in the application process. Income, credit history, employment history, and bank statements are confirmed and verified, and any questions that come up in this process must be explained to the underwriter’s satisfaction. Although you may not have much control over the verification of most of these items, you should ensure all documents you provide to the lender are submitted in a timely fashion, and are as detailed and accurate as possible.
One of the most important factors in the mortgage approval process is your credit history. The underwriter will review your credit report to see how well you made payments on, or paid off car loans, student loans and other lines of credit.The underwriter will then review your employment history, income, debt and assets. They’ll look at your savings, checking, 401k and IRA accounts, tax returns and other records of income, as well as your debt-to-income ratio. The lender looks for indicators to help them predict your ability to pay back what you borrow. They want to see that you, and any co-borrowers, have the ability to make the payments both now and in the future.
The borrower will often order a home inspection, which is a visual evaluation of a home's features and overall condition. This on-site evaluation, completed by a licensed inspector, checks the performance of the home's roof, driveway, foundation, framing, and the general condition of windows, doors, floors, ceilings, and walls.
The processor will order a home appraisal to determine the value of the property (if required) to verify that the home’s overall value meets the requirements of the particular type of loan you’re requesting.
Once your loan goes to underwriting, your UHCU Loan Specialist will stay in touch with you throughout the loan process. Prompt responses to any requests from your Loan Specialist will shorten the underwriting time as much as possible. Once any questions are resolved, the loan can move to final approval.If you have any questions or concerns, reach out to your UHCU Loan Specialist – we’ll be with you every step of the way!