How to Get an Approved Mortgage Online

Mortgage applications can take mere minutes for approval online.

Online mortgage approval makes the process of finding a loan much quicker and simpler. Some companies supply an approval or denial in minutes. Others take only a day or two to send an approval letter. The main difference between online mortgage applications and face-to-face meetings with mortgage officers lies with iffy financial situations. Anyone with shady credit or an undesirable debt to income ratio cannot argue their case with a computer. Online mortgage approval heavily relies on what someone's finances look like on paper.

Things You'll Need

• Pay stubs
• Last 2 W-2s
• Last 3 bank statements

Instructions

1. Check your credit score online. Each of the three credit bureaus, Experian, Equifax and TransUnion, must provide one free credit report annually. Check each for loan history, credit card payment history and credit card balance limits. All of this information should read correctly to ensure the credit score rates as high as it possibly can. Seeing a credit score might also help potential homeowners decide if their financial health is ready for a mortgage or if it makes more sense to wait a while and build positive credit history.

2. Gather financial paperwork together. Any mortgage application, especially one online, needs financial paperwork to prove credit worthiness. Online applications rely on the validity of this information because they may never see or talk to their borrowers in person. Online companies need information like the last two years of W-2 forms, the last month of pay stubs, three bank account statements and alimony and child support settlement documents. Applicants need some paperwork to fill out the application correctly and some of it to fax to the financial institution.

3. Compare online mortgage rates. Each lender has different terms, fees and interest rates. Many websites, such as Lending Tree, compare terms to help borrowers choose the best lender for them. Google also has a mortgage rate comparison tool that allows you to select whether your credit score is poor, fair, good, very good or excellent. A lower score eliminates certain lenders from the comparison pool and prevents applicants from applying to institutions that would deny them for a low score immediately.

4. Choose your favorite one or two lenders and click "Apply" or "Start Application" on their particular websites. The lenders need personal information, including a Social Security number to verify credit history. If the lender requires faxed documents, fax them immediately to prevent processing delay.

Tips & Warnings

• Contact the specific credit bureau if you find a mistake on your credit report. They may need to verify the correct information with creditors and this could take over a month.

References

• Bankrate: Mortgage approval made easy

Resources

• Lending Tree: Home