3 Simple Ways to speed up the Loan Application Process

According to the Mortgage Reports, it takes an average of 50 days to close a loan. That’s a long time to wait for your money! Taking out loans has increasingly become more difficult and time-consuming over the past few years. Within the past year, the amount of time it takes on average to receive a loan increased sharply by 10 days. Last year, it only took 40 days to close a loan. 50 days is a painfully long time to wait for a loan, but fortunately you can speed up the loan application process in these three simple ways:

Get Pre-Approved

You can shorten the loan application process by asking to be pre-approved instead of pre-qualified. To get pre-approved, call the lender and supply the necessary information over the phone. You’ll also be asked to supply documents. The lender will ask you about your annual income, employment, credit score, and down payment. If there are any potential issues with getting accepted for a loan, the lender will let you know. This saves you time because you can fix the problems before submitting the information to get pre-approved for a loan.

Send All Documents Together

Lenders require more documents than they did 10 years ago. In the past, you only needed a few forms, a loan application, and a contract to receive a loan. Banks now require borrowers to submit the full application because it speeds up the loan underwriting process. If you need to send updated bank statements, mail them to your lender before the bank because the lender needs them in order to close the loan. You would waste time to submit the information to the bank first.

Invest in a Good Attorney

Thirdly, you should invest in a good attorney. Many borrowers are reluctant to hire an attorney when applying for a loan because they don’t want to spend unnecessary money. A good attorney will speed up the loan application process, protect you from legal troubles, and save you money in the long-run. For example, if there’s a problem with the contract, your attorney can solve it with the lender. An attorney can also determine whether or not a loan is fair to protect you from predatory lenders.

It’s in your best interest to speed up the loan application process because you will get your hands on the money you need sooner with less hassle. Receiving a loan quicker is all about proper preparation, organization, and understanding the process. What slows most people down is being disorganized, missing necessary documents, and filling out the application incorrectly. Save yourself the hassle by hiring a good attorney to guide you throughout the process, ensure the loan is fair, and handle any problems that arise.