How Do You Know When Your Mortgage Loan Is Approved?
Potential borrowers researching the various aspects of the mortgage loan application process may want to know more about how they will know when their mortgage loan has been approved. Generally, home loan applications can take between 4 and 6 weeks for approval, however, this does vary depending on the individual mortgage provider and applicant. When a mortgage loan application has been approved, the borrower’s mortgage provider will generally let them know by calling or emailing.
A borrower should have a good understanding of the home loan approval process before they submit their application. Before a borrower applies for a mortgage loan, they should follow the following steps:
- Begin saving for a home loan deposit. Most lenders require a mortgage loan deposit to be around 15% of the property’s purchase price. Saving for a larger mortgage loan deposit can allow a borrower to become approved for more funds.
- Understand their credit scores. When a lender begins the home loan approval process, they will check into the applicant’s credit score and financial history. A borrower with a low credit score may find themselves at risk of not becoming approved, while a borrower with a high credit score has a great chance of gaining approval.
- Begin decreasing any existing debt. Debt can affect borrowers borrowing power and considerably limit the amount they become approved to borrow.
If you are interested in learning more about the mortgage loan approval process or are ready to apply for a home loan, reach out to the Mortgage House lending specialists for helpful assistance and information.