How Many Days Before Closing Do You Get Mortgage Approval? on February 4, 2021 If you’re currently going through the steps in securing a mortgage for your next home, you probably have a few lingering questions at the back of your mind. How many days before closing do you get mortgage approval? What happens if my mortgage loan is not approved before the closing date? What does a mortgage closer do? These questions all make sense to ask because before ever having to purchase a home, they are irrelevant to the majority of people that go about their day-to-day lives. If you’re one of the people that look at the mortgage process like it’s in a different language altogether, you’re not alone. Mortgage rates and all of the complicated terms involved with that can be intimidating. Mortgage Assist has a team of agents and brokers ready to help you with all of your mortgage needs. The goal at Mortgage Assist is to steer you in the right direction in securing a mortgage for your new home, even if you think you might not be qualified. The Mortgage Assist program has a variety of benefits that have helped many potential home-buyers. When you think you’re ready to purchase a house, you’ll need a mortgage. A mortgage is basically just a loan you’re requiring for the home. Mortgage brokers are all over the place, but before you instantly dive into one, you should do a little research on your own so that you understand how the entire process functions. One important thing you’ll learn about is what is known as closing day. Being prepared is the number one best thing you can do when you’re setting yourself up for the mortgage process. There is a wide range of tools designed to help people along the way with it. You can read many educational articles online, browse through different mortgage applications, and look at some mortgage calculators to give you a better understanding of how it all works. A mortgage lender can only work with what information you give them, so it’s best to be completely honest with them when you’re going over your needs and what you want out of the mortgage. The information you give them can help steer your mortgage application in the right direction. Throughout the mortgage process, there are some things you should do and things you shouldn’t do: Go Through The Pre-Qualification And Pre-Approval Process ✅This step is a very important one to take in the mortgage process because it will provide you with information on the financial capacity that you’re able to safely afford. If you fill out a mortgage application online, there are a bunch of different documents you’ll need to submit along with the application for verification purposes. This initial step is very important because it’ll give you a better chance of securing your mortgage with the mortgage lender when it comes to that point, and this means that you’ll have a better chance of being able to purchase that home that you’ve had your eyes on. This step will also give you a better idea of the price range of homes that you should even be looking at. ❌Refrain from browsing through endless real estate listings before you get pre-approved for a mortgage. Pre-approval is required to give you a better understanding of what budget you’re working with. If you skip this step, you could potentially be purchasing houses that you won’t even be able to afford. A lot of people tend to jump straight to researching real estate before going through the pre-approval, and sometimes that could result in some negative circumstances further down the road. Make Some Decisions Regarding Your Budget And Finances ✅You’ll want to develop a financial budget to carefully follow in the case of something negative arising. A budget will help you stay on track in being able to successfully afford the mortgage payments from month to month, and it will also leave you with a little bit of breathing room on top of the monthly payments. Doing this is a welcome sign for mortgage lenders, and it shows that you’re responsible for your finances. ❌If you’re working within your budget, you typically don’t want to start making massive purchases that will completely set you off the path that you’ve laid out for yourself. Making purchases that aren’t in a financial plan can result in increasing the debt you have to pay off, and worse, having to look into additional loans just to make ends meet. It’s best to stick with planned purchases instead of just jumping the gun and letting loose with something that you don’t really need. Keep An Eye On Your Credit Rating ✅It’s always good to keep a conscious track of where your credit rating stands and to continually improve it throughout the years. Applying for more loans will have a negative impact on your credit rating. If you start to see any discrepancies in your credit report, you’ll want to address them as soon as you can so that lenders have an accurate understanding of what’s going on. ❌Avoid any activities that will lower your credit rating. If you’re beginning to open new lines of credit, forgetting to pay rent, not paying utilities on time, and paying your cell phone bill late, these are all things that could lower your credit score. Your credit score is one important piece of information that your lender will look at when considering your mortgage application. Ask All Of The Questions On Your Mind ✅There are some important mortgage steps to closing on your mortgage, and there is no dumb question when it comes to that. Can you switch mortgage lenders before closing? Some people might think they are stuck with the same mortgage lender, so that is an important question to keep in mind. If you have a good mortgage lender, they will encourage you to ask questions so you know what you’re getting yourself into. It shows that you’re putting in the effort to understand the entire process. It’s good to sit down and write out a full list of questions you have for the lender. As you go down the list, take notes after each question is answered so that you remember what the answer to them was. You need to feel confident in your mortgage, and asking questions is one way that you can increase that confidence. ❌Don’t try to understand the entire mortgage process all by yourself. Mortgage lenders do their job for a living. It is their responsibility to provide you with all of the information you need. When the engine in your car breaks down, you typically don’t open the hood and start taking things apart if you don’t have a clue what you’re doing. This is the same with the mortgage process. What you can do is a little bit of research on your own, develop a list of important questions, and then bring them to the mortgage lender for them to answer. All of the various technicalities throughout the mortgage process can become complex and frustrating for many people. Take things slowly and carefully. If you feel the lender is getting impatient with your questions, simply go to another lender. How Stable Are Your Finances? ✅Before considering purchasing a house, you’ll want to make sure that you have a stable income flow every month. A constant stream of income into your bank account is one of the biggest things that lenders look at. If you don’t have the means to prove a steady stream of income, then lenders aren’t going to approve you as easily for the loan. If your monthly salary isn’t stable enough, then there is a good chance that your mortgage application will be dismissed. ❌Before buying a home, you typically don’t want to start looking into a brand new career path. If you go to a lender and tell them that you’re quitting your job next week and starting a business, they might be compelled to reject the application unless that new business is proving to have a steady flow of income in that short period of time. If you are planning on quitting your job, it’s good to have a backup job ready to start right away. This way, the mortgage won’t be stalled and no red flags will be raised if you’re still generating a stable income. Lifestyle Adjustments ✅If you have any notable adjustments in your income, it’s good to make note of them. If you are currently married with dual-income and get divorced, you should keep that in mind because that will affect how you’ll be paying for the mortgage. Your lender will also ask for the documentation surrounding all of these income changes, so it’s important to bring them when the closing day rolls around. ❌Many mortgage lenders don’t like seeing unexpected life events happening in someone’s life when they’re applying for a mortgage. Losing or quitting a job is a red flag, and if you’re not able to explain a loss of income, it’ll lower your chances of securing a mortgage. An example of an unexpected thing a mortgage lender might become confused by is if you quit your job and then deposit a massive pile of money into your bank account two weeks later. This may raise a few questions, but if you have the documentation to back it up, then there shouldn’t be as much confusion. It’s always a good rule of thumb to keep a trail of your financial actions. Your lender might also ask for other documentation that they didn’t initially ask for. It’s wise to keep a copy of all applicable documentation so that they understand where you’re sitting financially. It’s Good To Take Advice From Professionals ✅When you’re going considering switching mortgage lenders before closing, it’s good to consult with a professional in the mortgage industry to see if it’s a wise decision. For such a big purchase, you’ll want to fully understand where your money is going and why. You’re not expected to be an expert and know everything there is to know about mortgages when you’ve never even had the chance to learn about them before. Many first-time home-owners have the same questions as you, so seeking professional advice is highly recommended. ❌Some people like to learn and do all of the work themselves. Even if you’re the do-it-yourself type of person, it’s always good to go to professionals before anything else in the mortgage business. There are too many different documents and things to be aware of that you could simply get lost somewhere along the way. Doing it all on your own could result in unforeseen extra fees or payments that you could have avoided if you went to the professionals, to begin with. Learning what not to do before closing on a house is important in ensuring you’ll go through the smoothest mortgage application process that you possibly can. If you’re thinking you want to switch mortgage lenders before closing, you should probably have another lender in mind that you want to take your mortgage application to. The final mortgage approval before closing can sometimes raise some anxiety in people. Again, ask your questions, do your research, and don’t be afraid to look around for other mortgage lenders if you don’t feel comfortable with your current one.