The Loan Process - Step 5 Obtain Loan Approval

Once your loan application has been received, the loan approval process starts immediately. This involves verifying your:

• Credit history
• Employment history
• Assets including your bank accounts, stocks, mutual fund and retirement accounts
• Property value (via appraisal)

Based on your specific situation, additional documents or verification may be required.

To improve your chances of getting a loan approval:

• Fill out the loan application completely.
• Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
• Anything that causes your debts to increase might have an adverse affect on your current application. (Don't make any major purchases prior to closing - ie; car, furniture, etc..)
• Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please speak with your lender first.
• Do not go out of town around the closing date. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
• Notify your loan officer before applying for any other credit, including credit cards, personal loans or even with another mortgage company. Some loan programs have strict guidelines regarding your credit score. Credit inquiries may lower your credit score and may have an adverse affect on your loan approval. (Again, no major purchases before closing)

Written By: Akim R. Smyer, Real Estate Associate Broker - Coldwell Banker Residential Brokerage