How long does it take to get a mortgage? Probably longer than you think.
When lenders are issuing a mortgage, there is a lot of due diligence that they have to do. Some of these tasks include, verifying the purchaser’s income, assets, and doing a credit check on the borrowers. They may have to confirm their employment history and collect several documents from them in order to verify their income.
so how long does it actually take to get a mortgage?
The entire mortgage process has several parts. Some of these steps include, filling out a mortgage application, getting pre approved, getting an appraisal, and getting your final approval on the mortgage from your chosen lender.
In a normal market this process could take up to 30 days. Some lenders now move a lot faster, due to how competitive the market is. Having said that, you don’t want to leave getting a mortgage to the last second. You want to make sure that you are giving the lender enough time in order to process all of your information.
Start the mortgage process ASAP
If you do not know how long it takes to get a mortgage, should you start the mortgage process as soon as possible? The answer to this is YES!
Don’t wait until you have found the perfect home, start the mortgage process now! A smart first step would be to get pre approved. After all, without a mortgage pre approval, you have no idea how much of a mortgage you can actually afford.
When you get pre-approved by a lender, many will issue you a letter confirming you are pre-approved. It’s always a smart idea to get this in writing from your lender.
At the pre approval stage, this is also a time where you can compare mortgage rates. Take a look to see what types of rates banks and mortgage brokers have to offer. It is okay to shop around and get the best rate. We strongly encourage this.
You found the perfect home…now what?
You make an offer, it gets accepted and you can move in right away? Right? Wrong! Even though you have been pre approved for a mortgage, there are still several steps you need to complete.
You still need to apply for the actual mortgage and have the appraisal done on the property. An important point to know, is that the lender that you got the pre-approval with does not have to be the same lender that you get your actual mortgage with. If you are able to find better terms or a lower interest rate, you can switch to that lender.
Don’t forget, there is also the underwriting process. This is where the underwriter reviews all of the financial information to make sure there is no false or incomplete information on your application. Once everything checks out by the underwriter, you are okay to close and get the mortgage.
Problems that could delay getting a mortgage
The number one problem that causes delays in getting a mortgage are… you guessed it. Borrowers not proving their documentation to the lender in a timely fashion. Remember, if you don’t get your documents into the lender, they are not going to grant you the mortgage.
Be responsive with your lender. Provide them with what they ask for. If there is any confusion as to what they are asking for, ask them to clarify for you.
So, how long does it take to get a mortgage? If your mortgage is not ready by the time your closing date comes, you can be in big trouble. The seller can sue you for not closing. So make sure, you are on top of it and you get all your required documents into your lender quickly so that they can approve your mortgage.