Have you just spotted your dream house? Want to buy a home and finance it as quickly as possible?
If you’re thinking about buying a home but want to get it done in record time, you need to consider your financing options carefully. Getting financing can often be a slow process, and if you’ve spotted a great home to buy, you may not have time to waste.
In this guide, we’ll tell you about 3 of the best ways to finance a house quickly.
Top Ways to Finance a Home Quickly
Here are a few of the top ways you can finance your home fast.
1. Check Lender Approval Times
One of the ways that you can finance a home quickly is to simply find a mortgage lender that offers quick approval times.
Things have come a long way in recent years and more lenders are offering rapid pre-approvals, some as fast as 24 hours or less. However, this isn’t true with all mortgage lenders that are out there, so you’ll need to do a good bit of digging to find out exactly what each lender offers.
Many traditional banks allow you to fill out mortgage applications online and will get back to you within a short time frame. Be sure to ask around and do some online research to find out what the typical process is for various lenders and how long it typically takes them to get back to you. You may find that there are some great options that will give you a response quickly.
2. Use Online Lenders
While many traditional lenders are taking things to the next level by providing quick approvals, using online lenders can be a great option for getting a mortgage as well.
Online-only lenders often offer faster approval times than traditional lenders do and they can be a good option to consider if you’re in a hurry to buy a home. Online lenders can also be helpful when financing a house with bad credit.
Online mortgage lenders vary by quite a bit, however, so you’ll need to be careful with your choice. Some online lenders will have very high-interest rates, so be sure that you compare your online lending options carefully before choosing one.
3. Consider Bridge Loans
If you currently own a home and want to buy a new house as quickly as possible, getting a bridge loan can be a great idea. A bridge loan is typically faster than other types of loans.
A bridge loan provides temporary short-term financing to borrowers who are currently in the process of selling a home but want to buy a new one before it sells. It can help cover the cost of the new home even if your old one hasn’t sold yet.
Keep in mind that these loans will usually need to be paid back in 12 months or less. A bridge loan is typically given for 80% of the value of your current home and the home you’re buying combined.
If you want to get funding fast and move into a new home quickly, getting a bridge loan could be a great way to go. If you think that a bridge loan may be right for you, you’ll want to read more about understanding bridge loans now.
Speeding Up the Home Buying Process
No matter what type of lender you decide to use, there are ways to speed up the process. Here are a few simple tips you should keep in mind when getting a mortgage and preparing to buy a home.
Gather Your Paperwork Beforehand
One of the main things you can do to speed up home financing is to gather any paperwork you need as early on as possible. You’ll need to submit a variety of documents to a lender in order to get approved for a loan or mortgage, so be sure you’re ready.
Typical paperwork that you may need to provide include 2 years of federal tax returns, 2 years of W-2 forms from your employer, pay stubs, current real estate ownership information, asset information, residential history, and more. Be sure to check with individual lenders to find out exactly what you’ll need to provide.
Be Ready to Explain Your Case
When seeking a mortgage, you’ll also need to be prepared to speak with an underwriter.
Pre-approvals can take longer if something regarding your financial situation is out of the norm or complicated. In the case of a recent employment change or a recent divorce, for example, things may take a bit more time to handle.
Be prepared to explain your situation to an underwriter and provide additional information when applying for a loan.
Get a Pre-Approval Instead of a Pre-Qualification
When aiming to get a mortgage, you need to make sure you know about the differences between pre-qualification and pre-approval.
Pre-qualification is simply an indication that you may be approved by a lender. A pre-approval is a solid confirmation from a lender that you’ll be able to get a loan when needed.
When looking for a home, you’ll want to be sure to get a pre-approval, since this will give you a better chance of winning a home bid.
Using These Tips to Successfully Finance a House
If you want to finance a house quickly, you need to consider your options carefully. Getting a loan can sometimes take a lot of time, but by following the tips and strategies above, you may be able to get a loan in record time.
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