How Do You Speed Up the Home Loan Process?

Speeding up the home loan application process can potentially save you thousands of dollars over the long term. After all, if you fail to lock in at a low rate today, you could wind up with higher monthly payments and the hassle of time consuming refinancing in your near future. Speeding up your process requires some proactivity on your part, although buyers shouldn't be intimidated by the paperwork and logistics involved.

One idea is to get your loan before you actually shop for a house. Getting pre-approved by a lender will make you a more sound prospect to sellers, and it will empower you to lock in at a particular interest rate. Thus, you can calculate how much house you can afford before going home hunting, and you can budget for closing costs, property taxes, homeowners association's fees, and other costs more accurately.

You also want to be direct and fast on the draw with your mortgage company. Whenever a representative telephones you or emails you for another piece of information or documentation, get back to the representative as soon as possible. Prepare your paperwork in advance. Gather together statements of income, explanations of marks on your Experian, TransUnion, or Equifax credit report, and your employment history. Prepackage all the necessary documentation into a file for easy delivery to the mortgage company.

Bear in mind that even moderate-size companies will go through hundreds of applications at one time. To make sure that your application gets the attention of administrators, it doesn't hurt to call or email to check in on the process. You don't want to harass your mortgage reviewer, but it's okay and socially acceptable to nudge him or her a little bit.

You can also take care of financial loose ends before going through the loan application process. If you have red flags on your credit report, contest them and bump up your score prior to your application.

If your credit score is below 650, for instance, it may make sense to reduce your debt, clear your credit slate, and get your long-term budget in order before going to a lender. After all, even if the national interest rate goes up a few percentage points during the time that you raise your credit score, you'll likely come out ahead financially in the long run.