Unless you have a couple hundred thousand dollars sitting somewhere, getting approved for a mortgage can be hard since it’s a major part of purchasing your new home. Mortgage approval processing can take anywhere from weeks to several months, based on the status of the market, your lender, and your personal circumstances.
The mortgage process is very involved, especially with the necessary documentation required, third-party verifications, as well as independent appraisal process. These moving parts naturally cause a delay in processing, especially if any issue arises.
So how long does it take to get a mortgage? The mortgage process includes several parts, which encompasses getting pre-approved, getting your home appraised, as well as getting the actual loan.
This process takes about 30 days on average in a normal market. However, it can take longer in high-volume months, taking it up to an average of 45 to 60 days, based on the lender. Furthermore, if the lender finds any financial hiccups in your information (e.g., previous foreclosure, a low credit score or overwhelming debt, getting approved for a mortgage can become slower and more complicated.
Begin the mortgage process ASAP. You don’t need to wait until you’ve found the perfect home before you can start the mortgage process. You can begin as soon as you start thinking you might want to purchase a property.
Most sellers will need buyers to get pre-approved for a mortgage prior to accepting an offer. This involves the lender inspecting your debt-to-income ratio, credit rating as well as other crucial financial information. Based on your circumstances, this usually takes anywhere a week to several months.
After approval, the lender can provide a letter that specifies the amount of money you’re approved for, then you can begin shopping for your home.
After making an offer and having it accepted, you can’t instantly move in. Even after being pre-approved for a mortgage, there are still a few steps remaining.
Apply for the actual mortgage loan. This also includes going through the appraisal process. Take note that the lender wherein you get your loan from don’t need to be the same one that pre-approved you. Moreover, the time it takes to get an appraisal varies based on how fast you can secure an appointment with an appraiser.
When and where to apply for your mortgage. This part involves you meeting with a mortgage lender to get pre-qualified. This means the lender thinks that, according to your credit score, income, and other vital factors, you should be approved for a mortgage. Take note that this is informal and non-binding.
When choosing a home loan financer, seek out the best fixed rate home loan provider available, and seek online reviews with online sites like Consumers Advocate.org . As you get closer to buying a home you’ll want to seek pre-approval. You can meet with a local bank, credit union, or mortgage broker. Or you can even get pre-approved online from any number of national online mortgage lenders.
In end, there’s no specific time to acquire a mortgage. It will depend on many factors, including your preferences, having all required financial documents in order, and yeah, a little bit of luck. So, if you’re keen on buying a home any time soon, the sooner you can begin the process, the better.