Anyone acquiring property, whether for a personal dwelling or a rental, needs to qualify for a mortgage loan. But borrowers will need to be careful and do their diligence before going to a lender. Many will need to meet the deadline for an offer, and if that’s the case, you might need to get a quick mortgage as a landlord. But how soon can one get a mortgage? Here, you’ll find information to help you secure a mortgage loan approval. 

How Fast Can You Get A Mortgage Loan?

Applying for a mortgage loan typically takes two weeks to get a lender’s approval. It also takes up to three months to complete the process of a mortgage offer. The longest possible time would take months to come full circle, but only if your situation is complicated.

You can opt to apply for a fast mortgage for those who are pressed for time, also known as a fast-track mortgage. You can find a broker and seek out practical advice on proper documentation for the application. 

Ways For Landlords To Fast-Track Mortgage Application

The following are ways to fast-track mortgage application:

Utilize A Fast-Track Mortgage

A fast-track mortgage can be used by individual borrowers who have good credit scores. A good credit history qualifies you for a fast-track mortgage loan processing with a faster underwriting process. It’ll be easier, especially when lenders are raising the interest rate for landlords. 

Fast-track mortgages are also utilized for refinancing. The process is very similar to other types of fast-track loan processing in that it has a simplified way for qualified borrowers to receive a loan offer. Among the benefits of fast-track mortgages are as follows:

• The application process is shorter

• The approval time is faster

• There are fewer people involved

• Miscommunication is less likely to happen

• The closing process is much quicker

Your credit history must be long enough to qualify for a fast-track mortgage loan. If your loan application is declined, it can also be due to too much available credit. You must monitor your credit score continuously and take steps to correct and increase your credit score. It’ll take time, but the reward is worth it, especially if you want to acquire another property. 

Make Use Of Rental Income

Landlords wanting to qualify for a residential mortgage loan can use the rental income from their properties for rent. Depending on the mortgage lender’s requirement, you can present a financial account containing the rental income dated for at least three years. If you have multiple lenders you want to apply for, you can show it to them to help them qualify for a mortgage loan.

Ensure that the income is official and shouldn’t be relying on proving it through rental agreements or bank statements. You must also be eligible for other criteria set by the lender, which vary among them. 

Proving Income

For landlords who want to use rental income as evidence that you can pay off your mortgage loan, it’s essential to hire an accountant. Your professional accountant knows how to create documentation of the rental income in a well-structured manner. A lender who sees the paperwork will get the impression of a responsible borrower. It also shows that you’re not overpaying taxes. 

Lenders are gathering enough information on your financials to meet their requirements. Note that if you’re only doing business for less than a year, but the accounts they need are for three years, your yearly profit will be divided by 36. It’ll help them to identify the average earnings per month over three years. It’s uncommon for even the landlords to present financial solid stability when their accounts are too manipulated.

Ensure that you include every income stream you have when working with an accountant. It’s essential to never try making estimates of future earnings or even rely on income history. The most important thing is to show actual figures as proof because they hold more weight. 

The Risks Of Rental Income Proof

It would help if you also were realistic and expected that not all lenders would accept rental income. Responsible lending is being upheld due to the financial crisis last 2008 making the rules stricter. Lenders are aware that there’ll be a reasonable period that your rental property will be vacant or unattended. They will need to be sure that you can cover regular mortgage payments even if your rental business becomes stagnant. 

It’s also the reason why most mortgage lenders will ask for three years’ worth of rental income. It’ll be easier to get approval if you’ve added one or two more rental properties. It’ll help cover the payment of other vacant properties. Once you’re able to show your success as a landlord, it’ll help speed up your application. 

In Conclusion

Landlords have options for them to qualify for faster mortgage processing. Lenders have eligibility requirements to be eligible like other borrowers. Some lenders are also making it easier for various borrowers to get approved because it’s good business. But before signing anything, it’s best to look for a deal suited for you with interest payments that are right for your budget.