Tuesday, November 8, 2016

The Mortgage Process - How Long Does it Take?

Posted by: Chris Kinsella, United Home Loans

Borrowers are always curious about the length of time it takes to close a loan. The process varies for each situation, but typically a closing takes 30 to 45 days from contract acceptance to signing your closing papers and getting your keys. Getting a mortgage is a very involved process, so it's important for both the borrower and lender to meet deadlines to avoid additional costs and headaches.

Below is a rough estimate of the time frame to purchase a home:

PRE PURCHASE - The lender educates the buyer on mortgage options and offers preapproval. The real estate agent and buyer begin to search for the home.

Days 1 -3 APPLICATION - Once under contract on a new home, the buyer becomes the borrower and completes a loan application with information such as employment and income data for the past two years, financial information on assets and liabilities, and any other data that could affect the loan decision.

Days 4 - 6 OPENING THE FILE - The lender orders property appraisal, title insurance, verification of employment, and collects an application fee.

Days 6 -12 PROCESSING - The lender reviews documents as they are received. These documents include credit reports, verification of assets/income and the appraisal. In addition, debt and payment histories are reviewed and verified.

Days 7 - 25 LENDER UNDERWRITING - The underwriter reviews the entire loan package and the borrower receives an initial/conditional approval. It is important to respond quickly to lender requests to meet contingency/closing deadlines.

Days 17 - 27 PRE-CLOSING - When all approval conditions are met: the borrower receives Clear-to-Close (loan commitment), the closing is scheduled by the attorney, and the initial Closing Disclosure is sent to borrowers.

Days 21 - 30 CLOSING - The end is near: the borrower obtains loan proceeds, the borrower gets cashier's check for the remainder of down payment and closing costs, the loan closes, and the borrower moves into their new home.

As a local full-service mortgage lender, United Home Loans is committed to providing you with a hassle-free mortgage process. If you have any questions about obtaining a mortgage or need a fast preapproval, contact Chris Kinsella here or at 630-564-3272.

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