5 Tips to Get Your Mortgage Loan Approved Quickly

Buying a home is a big decision, and one of the most important steps is obtaining an underwritten mortgage approval from a mortgage lender. The process begins with filling out a mortgage application. Filling out a mortgage application may seem overwhelming, but with the right preparation and knowledge, it can be a smooth and straightforward process. It is important to take your time and double check that your mortgage application is accurate and complete. This will ensure that the underwriter has the necessary information to underwrite your loan.

Here are some tips on how to fill out a mortgage application:

1. Read the instructions carefully. The mortgage application will have terms that may be unfamiliar to you, so it’s important to read the instructions carefully. This will help you understand what information is required and how to input the data correctly.
   
2. Gather all necessary documents. Before you start filling out the application, gather all the documents you’ll need. This includes documentation to show your income, assets, and debts. A general rule of thumb, is to provide two of the most recent documents of your assets, paystubs, and W2s.
   • For asset statements, avoid screenshots and current balances. Those often will not include the full account number, account holder’s name, or transaction details. Instead, download the full month’s statement in PDF format. You do not need to provide more assets than you need in order to qualify. For example, for a $1,500,000 purchase price and 10% down, you would need to show qualifying assets of $150,000 for down payment. Also, ask your loan consultant for the addtional amount of assets needed for closing costs and reserves. It is better to provide statements from fewer institutions than a
   • For income, provide two of your most recent paystubs and two years of W2s. If you have received performance cash bonus for the past two years, obtain the year end or fiscal year end paystubs from the past two years. For RSUs, in addition to two year end paystubs, provide your grant award letter/agreements for the past two years, and also obtain your vesting schedule.
   • For self employment or business income, provide two of your most recent years of tax returns.
   • For rental income, provide two years of 1040 Schedule E, lease agreement, most recent mortgage statement, homeowner insurance policy, property tax statement, and HOA bill (if any).
     
3. Be accurate and complete. The accuracy of your information is essential. If you make a mistake, it could delay the approval of your loan or even disqualify you altogether. When entering your income, enter as a monthly amount if the application is asking for monthly. Base pay, bonus, commission, and RSUs should be entered separately. Ask your loan consultant if you are not sure.
   
4. Be honest. It’s important to be honest and complete on your mortgage application. Income and assets need to be supported by your documentation. Do not guess or estimate.
   
5. Ask for help if you need it. If you’re not sure how to fill out the application or what documentation to provide, don’t be afraid to ask for help from your loan consultant.

Filling out a mortgage application requires you to be accurate and complete. A mortgage application that is inaccurate or incomplete will require you to spend additional time making corrections and may delay your close of escrow. By following these tips, you can increase your chances of getting your loan approved and for buying the home of your dreams.