How Do You Qualify for an Expedited Mortgage Process?
To qualify for an expedited mortgage process, you must meet certain eligibility criteria. Generally, mortgage lenders look for borrowers who have a good credit score and a low debt-to-income ratio. Some lenders may also require that you have sufficient funds in reserve to cover closing costs and other expenses associated with the loan, but this isn’t always the case.
Buying a home can be a long and drawn-out process. It’s no surprise many New Orleans home shoppers are eager to pursue ways to finalize the transaction sooner rather than later so they can begin moving into their dream house.
If you’re a serious and capable buyer looking to quickly purchase a home or refinance your existing mortgage, a fast-track mortgage may be the right option for you.
What Is a Fast Track Mortgage?
A fast-track mortgage allows you to complete the loan process quickly. This type of mortgage is typically reserved for borrowers with good credit and a steady income.
The process for obtaining a fast-track mortgage is usually streamlined, with fewer documents required and less time spent waiting for approval. If you need to purchase a home quickly or are in a hurry to refinance an existing loan, you should consider inquiring about your fast-track mortgage eligibility.
How Does an Expedited Mortgage Process Compare to a Standard Mortgage Process?
A standard mortgage process can be long and complicated. As a borrower, you’ll be asked to gather and submit a lot of paperwork, such as income verification, bank statements, tax returns and other financial documents. Submitting this paperwork is necessary as the lender must ensure you’re capable of repaying the loan after the purchase is finalized.
Additionally, the lender must assess your creditworthiness to determine whether you’re a trustworthy candidate for a loan. This process can take several weeks or even months to complete.
Conversely, fast track mortgage allows you to skip several steps in the homebuying process and get approved for a mortgage shortly after applying (you can be approved in as little as two weeks). Lenders will typically accelerate the homebuying process if you can show you have a low risk:
- Credit score
- Loan-to-value ratio (if you’re looking to refinance your home)
- Loan-to-income ratio
How to Improve Your Chance of Qualifying for a Fast-Track Mortgage?
You can help ensure your approval for a fast-track mortgage by taking these steps:
- Make sure you have a good credit score and make improvements if necessary
- Avoid any life changes and increasing balances, such as quitting your job or purchasing a new car (these changes could negatively affect your loan-to-income ratio and derail your chances of qualifying for a fast-track mortgage)
- Gather all the necessary documents required by the financial institution
- Get a home inspection and appraisal done as quickly as possible
- Ensure you have enough money saved for a down payment and closing costs (many lenders require at least 20 percent of the purchase price as a down payment for a fast-track mortgage)
- Fill out the necessary paperwork
Reasons to Pursue a Fast-Track Mortgage
- You need to move quickly to secure your dream home before losing it to another buyer
- You are simply looking to avoid the hassle and inconvenience associated with the intrusive and long-lasting loan approval process
If you’ve been prudent about managing your finances, lenders like OnPath Federal Credit Union may be able to reward you with an expedited mortgage process.
Finance Your Dream Home with a Mortgage Loan from OnPath FCU
Whether you’re a first-time homebuyer or a longtime homeowner, OnPath has the right loan for you. Our mortgage loans feature competitive rates, expedited mortgage options for qualifying borrowers and flexible terms, so you can find the perfect financing solution for your budget and lifestyle.
Our knowledgeable team of mortgage experts is here to help guide you through the entire process. To learn more about our mortgage options, call 800.749.6193.