Getting a mortgage takes approximately 18 to 40 days. However, it depends on circumstances such as an individual’s situation and market status.
In a time of fast deliveries and quick online services, we are used to the expeditious fulfillment of our needs and wishes. But this is not always the case when it comes to getting a mortgage.
If your situation is complicated, getting a mortgage might take longer than you think. But if your situation is simple and you have a good credit rating, the process may become a bit quicker.
The mortgage process involves a lot of paperwork, and the whole process has more than a few parts. These include;
- Getting pre-approval
- Getting home value
- Getting the actual loan
Throughout the process, there is no specific time range that each part takes. Each step may take minutes, hours, or even days.
A pre-approval letter is the most essential thing in getting a mortgage, and it usually takes only a few minutes.
Pre-approval involves deciding how much you can pay each month for your mortgage. You can use a mortgage calculator to determine the loan amounts and the payment range.
Then you can pull up your bank balances and find the right lender. Keep in mind that the loan terms and interests vary in different lenders. It will help if you search for mortgages with banks, mortgage brokers, or nonbank lenders.
If you need guidance in pre-approval, qualified teams like the YesCanDo Money mortgage brokers offer free mortgage advice. Getting advice will help you get everything in order as well as check your credits. This will save you a lot of time at the end of the day.
You don’t have to wait until you find a house to get a pre-approval. Getting it helps you to know in advance how much you can actually borrow.
Getting Home Value
Once you submit your application, they will check your credit score, debt ratio, income, and other relevant financial information.
If you get approved, the lender sends you a letter affirming the amount of money you are approved to borrow. Now you will know the value of the house you will be looking for.
Remember that most sellers will need to know if you can afford to pay for the mortgage before accepting the offer. Your circumstances will determine the value of a home you qualify to buy.
Getting the Actual Loan
After you’ve been pre-approved and have found your new house, it’s still not time to move in. You will have to apply for the actual loan, which is made through the appraisal process.
Before lending you money, the lender will want to know the worth of your home-to-be. This appraisal serves as security for the lender in case you are unable to pay for your mortgage.
The appraisal process will also take time, probably days or weeks.
If the lender asks for additional documentation, your mortgage broker can help you with all the paperwork.
After obtaining the home appraisal, an underwriter examines all the financial information you provided to ensure there are no false claims on your application. Then your application is approved, and you finally get your loan.
What Causes Delay in Getting a Mortgage
Unfortunately, there could still be barriers along the way, including delays in the appraisal, tax transcripts verification, and employment verification. So, buyers are advised to be prepared for this process in advance.
The best thing to do is to have all your financial documents in line and get some advice from experienced mortgage brokers. If you are planning to buy a new home, you better start the process now!