Quick Mortgage Approval: The Do’s and Don’ts

Ready to buy a home? If so, you'll need to get your finances in order to prepare yourself for mortgage approval. Unless you plan to pay all-cash for your new home, a mortgage is a must. And the quicker you can get approved, the better.

The question is, what can you do to ensure the mortgage approval process moves along quickly? Not only that but is there anything you should steer clear of that could sabotage your mortgage?

Let's check out some of the do's and don'ts when it comes to quick mortgage approval.

Do's of Quick Mortgage Approval

Have All Your Paperwork Ready

There's a lot of paperwork involved in the mortgage approval process. You'll have to submit several documents to your lender for processing, which can take some effort and time to gather.

Before you even start the house-hunting process, you'd be well-advised to collect all the required paperwork your lender needs so it's ready for submission. This includes bank statements, a letter of employment, tax statements, and other documents. Having this paperwork ready ahead of time will save you a lot of time — and headaches — afterward.

Get Pre-Approved

Getting pre-approved for a mortgage before you start searching for a new home will help move the final mortgage approval process along faster. Once you go through this process, final mortgage approval after you've put in an offer on a home will be much smoother and more streamlined.

Don'ts of Quick Mortgage Approval

Take Out a New Loan

Your ability to secure a mortgage depends on a few key factors, including your income and debt level. If you add more debt to the pile by taking out additional loans prior to final mortgage approval, you could be sabotaging your ability to get approved.

At the very least, you may not get approved for as high of a loan amount as you may want or need, which could mean that you'll need to look for homes in lower price brackets.

If you plan to buy a home in the near future, refrain from taking out additional loans that could make it more difficult for you to get approved for a mortgage.

Change Jobs

If you choose to get pre-approved for a mortgage, your lender will base their decision on your current situation. But if anything changes, such as your employment, that could nullify your pre-approval.

Your initial pre-approval is based on the job you held when you applied, along with your income. But if you change jobs, the lender may have to start the process over again. And if the job that you change to pays you less or is not as stable as your original job, that could throw a wrench in the process and risk mortgage denial.

If you plan to start a new job, wait until after the sale of the home closes and your mortgage approval goes through.

Co-Sign a Loan

Again, changing your financial profile is not a good thing when you're applying for a mortgage, and co-signing a loan for a family member or friend could impact your finances. In this case, your lender will conduct a second credit check prior to mortgage closing, and any new loan amounts — including those that come in the form of a co-sign — can negatively impact approval.

If a friend or family member needs your signature on a loan, wait until long after you've already been approved for a mortgage.