Easy Checklist For Faster Financing
Like learning yoga or taking a swim in the ocean, there are things we do simply to restore peace and balance in life. The same holds true for personal finances. Opening a savings account, investing in an IRA – or simply consolidating bills or setting aside money for an emergency fund – all bring a sense of financial well-being.
Whether your goal is to purchase a new home, consolidate your debt, make home improvements, or pay for education, medical or emergency expenses, knowing what you can do to speed your loan review is the surest way to set your mind at ease.
Typically, the process of obtaining a home equity loan or line of credit takes an average of 25 to 30 days, according to Leonard Fernandes, vice president of First Hawaiian Bank’s Residential Credit Center.
“We understand customers are busy and if they are not on top of things, it can cause delays, whether they are applying for home equity financing or a new mortgage, ” says Fernandes. “If a customer says she will return with documents for underwriting and it takes her two weeks to do that, this causes delays. Delays in securing financing often put home-buyers at a disadvantage because many sellers prefer quick transaction and may accept another offer before you are ready.”
One of the most common causes of loan approval delays stems from incomplete or inaccurate information, so preparation is key – but there are a few things to remember to make the process flow smoothly.
“The borrower needs to be as complete and detailed as possible when completing their loan application,” he says. “Sometimes, for example, an application will come in and a borrower may have forgotten to mention that they own an investment property. The mortgage balance shows up on the credit report, and then we have to go back and collect the supporting documents – details on that property and rental income.”
Documentation is key to a smooth application process – so having your supporting paperwork in hand ahead of time can expedite the process. Be ready to provide current pay stubs, W-2 forms, federal tax returns, and bank statements, as well as information about investments and outstanding loans. Because underwriting is one of the most time consuming parts of the process, getting the paperwork together ahead of time will ensure the bank has everything it needs to process your loan.
Sometimes the process can also be tripped up when the underwriter discovers discrepancies in the information received from the borrower and what is being reported in their credit report. It is important to thoroughly disclose job changes, increases or decreases in income, additional debt, if anyone has been removed from title, or passed away, and even changes in marital status, as the information you provide needs to match that of your credit report. In order to be approved for a loan, the underwriter is required to verify all sources of income, expenses and every aspect of your credit worthiness.
Applying for a loan or line of credit doesn’t have to be difficult and there are things you can do to avoid delays. If at any time you have questions or concerns, the personal bankers at First Hawaiian Bank are ready to help you. Remember, your personal banker at First Hawaiian Bank is on your side … having someone guide you through the loan process can make all the difference in the world.
“A First Hawaiian Bank personal banker will be glad to help you determine how much you can afford, get pre-qualified for a loan amount that you are comfortable with and guide you step-by-step through the entire process,” Fernandes adds.
If you want to find out more about how much of a mortgage or equity financing you qualify for, the first step is to call or sit down with a First Hawaiian Bank loan officer or personal banker. Set your mind at ease – give First Hawaiian Bank a call today.