How The Applicant Can Speed Up Loan Processing Time

Getting a loan processed in a timely manner would seem to be a snap given the advances made in document management.

Yet even in the electronic document age where misfiles are drastically reduced and documents are easily routed to the next processing level, processing a loan can still slow down to a halt when additional information is not provided in a timely manner.

Granted processing a loan can be accomplished in as little as two to three weeks. So, when loans take eight or more weeks to process the borrower has to wonder what went wrong? Were critical due dates missed? Is there an issue regarding employee productivity here? Was the loan application approved in the first place? To be fair a loan applicant also has to ask, did I do everything I could have done to make this transaction go as smoothly as possible?

Being prepared to accelerate the loan process is crucial to getting the needed funds in a timely manner. Many borrowers don't realize that there is some homework involved. For instance before applying for a loan certain questions need to be answered.

How long do I plan on staying in your home?
What amount of monthly payment can I comfortably afford?
How much money do I have for a down payment?
Do I plan to pay the mortgage off early?
Do I intend to make extra principal payments?
Do I project an increase in income?

Once figuring these issues out you are in a better position to determine the type of loan program needed. Matching the right lender and loan program to the borrower takes into consideration the applicants financial profile, the loan amount requested, credit status and housing situation.

Once a good lender/borrower match is made the borrower must address other issues pertaining to the loan terms quoted.

1. What is the interest rate on this mortgage?

2. How many discount and origination points will I have to pay?

3. What are my closing costs, and will you provide a good faith estimate of these costs up front?

4. When can I lock in the interest rate and what will it cost me to do so?

5. Is there a prepayment penalty on this loan?

6. What is the minimum down payment required for this loan?

7. What are the qualifying guidelines for this loan?

8. What documents will I have to provide?

9. How long will it take to process my loan application?

10. What might delay approval of my loan?

Others steps and methods that can help smooth out the loan process are:

Keep copies of all documentation passed on to the loan officer. Keep copies of all certificates of satisfaction. Keep receipts of all major purchases and quickly resolve any disputes of non-payment. Check your credit report regularly and inquire about any questionable items posted on the report.

Mortgage Loan Search Network at http://www.bcpl.net/~ibcnet offers consumer tips that help loan applicants to make better choices when shopping for rates, choosing the right loan program and finding the right lender.

When choosing a lender take the time to contact several over a few days and narrow your list down to only those lenders who took the time to contact you immediately, answer your questions to your satisfaction and showed professionalism and good customer service.