Once the loan application is received, the loan approval process will begin immediately. Your lender will verify your credit and employment history; all your assets including bank accounts, stocks, mutual funds, and retirement accounts; and the value of the property you want to buy.
You may need additional documents or verifications as well.
Your loan will be expedited if you:
- Complete the loan application, checking for blanks that need to be filled and asking someone to go behind you and double-check again.
- Respond quickly to the bank's requests for additional documents, especially if you have a locked rate or need to close by a specific date.
- Don't make any major purchases until your loan closes. Any increase in debts may adversely affect your loan application's approval.
- Don't move money into your bank account unless it can be traced. There are some federal laws controlling this, and though you probably won't have a problem with the loan closing because of this, it can drastically delay your loan. If you're getting cash from family, friends, etc., let your bank know what you're doing before you put the money in your account.
- Don't leave town around the closing date without leaving a power of attorney so another individual can sign on your behalf if the bank's ready to close.
