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[MoreMore Insights] Minimise Application Delay



Mortgage Application Processing Time



The mortgage loan application processing time can vary significantly across different lenders and over different periods of time. Some applications may only take a day for the lender to unconditionally approve your loan, while others may take months. So what are the factors influencing your loan application time and how can you minimise any application delays?


Factors Influencing Loan Application Time:


Your Documents


The loan application process follows a linear threshold process, where one must provide all the required documents before proceeding into the next phase of the application process. Not having these documents available when required can delay the application process. And at the same time, please make sure your documents are up-to-date, as most banks will require documents to be within 30 days or 45 days.

Your Personal Circumstances


Your borrowing amount, source of income, personal and business assets/liabilities, specific loan product needs and other personal factors can all contribute to the application processing time. Simply put, the more complex your financial circumstances are, the longer your application will usually take.


Additionally, any major changes to your personal circumstances during the application may lead to lenders reassessing your application and extending the processing time.


Lender Circumstances



Your application processing time is highly dependent on the productivity of your lender’s loan processing team. If your lender faces a great inflow of applications, it is very likely that your application process will take longer than usual. Similarly, if the current market demand for loans is strong, it is likely that all lenders will face a longer processing time, which has been observed during the 2021 housing-price mortgage application boom.




How to Minimise Application Delays:


Talk to Your Mortgage Broker Early On


The best way you can accelerate the application process is to contact your mortgage broker early on. Given your personal circumstances, your mortgage broker will be able to tailor you to the most time-appropriate strategy for the application process.


Declare All of Your Liabilities


Got a credit card you've never used? Have student loan or store card from a department store? Or have car loan under your company? Make sure you have declared all of your liabilities, no matter how small they are. Forgetting to declare these liabilities will cause delays in processing, if your lender picks up from your credit report.


Prepare Your Documents in a Timely Manner


As your documents are a major factor influencing application processing time, you should prepare your documents in a timely manner. Ask your mortgage broker what the requested documents are so you can have them prepared before your lender asks for them. Also remember to return signed documents as soon as possible, and be prepared to provide additional documents when been asked.


Choose the Right Lender


With individual lender circumstances being a key factor in application processing time, choosing the right lender can help minimising any unnecessary delays.


You can seek advice from your mortgage broker as they are more experienced with what each lender can offer, and can help you to speed up the application process.

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