It makes sense that the loan approval process of borrowing a meaningful amount of money should take time. Bureaucracy, right? Lots of paper going back and forth? You can’t get a hold of your broker and it’s already Friday afternoon?
But wait, lenders are always using specific language in their ads that makes it sound so smooth and easy. “Overnight approval,” that’s what they call it. A lot of people end up depending on those promises and wait or hold off on starting the process, thinking that it can start the moment one founds the perfect dream house. When it doesn’t go as the ads claim, it’s a serious bummer.
If you’re still here with us, you probably understand what we are talking about. And we’ve assembled 3 useful tips that we believe would make the process smoother and, more importantly, will spare you time and frustration in the process of obtaining a loan.
1. Be reliable
The lender is smart. He or she will most likely find any skeletons you’re hiding. Trying to keep something from them is only likely to increase any suspicion on the lender’s part and raise additional questions. You want to know something? Most of your ‘skeletons’ are minor. If you still think something might be working against you, write a letter of explanation to your lender – don’t forget it’s in his favor to give you money. Just show him you are creditworthy.
2. Be honest
Tell the truth. Let’s be clear about it: if the numbers don’t make sense, the loan approval application can be delayed, and maybe even automatically canceled. It’s your lender’s job to make sure you qualify for the loan, and he or she will find out if your earnings are exaggerated or if there is any mismatch with your credit score.
3. Don’t leave any blanks
Make sure every section in your loan approval application is filled out, and don’t be alarmed to use the help of your broker. Aim to get it done the first time you fill it out and avoid the potential back-and-forth ping ponging. If some items just don’t make sense and you thought leaving them empty is enough, think again. It will hurt you, so do yourself a favor and even just fill it up with a ‘N/A’.