Congratulations on finally finding your dream home! But now comes the not-so-dreamy part: the mortgage process. It can feel daunting, with piles of paperwork and seemingly endless waiting periods. But fear not, future homeowners! In this guide, you will know the details of the process and its typical timeline. Moreover, America Lending Group will discuss a few factors that can impact the speed of your mortgage marathon.
Generally, getting a mortgage approved and closing on your new home takes 30 to 60 days. However, this is just an average, and the actual timeframe for you could be shorter or longer, depending on several factors.
Steps in the Mortgage Process and their Durations
Let’s break down the key steps in the mortgage process and their estimated durations:
- Pre-Approval (1-2 weeks): This is very important. Here, a lender evaluates your income and credit profile to provide an estimate of the amount of loan you are eligible for. This enhances the value of a product in the marketplace since consumers are always on the lookout for better products.
- Application & Documentation (1-2 weeks): After doing so, you can file a formal application together with proofs of income, such as Form W-2s and 1099s, proof of salary and other income, as well as proof of residency, such as utility bills, copies of lease/mortgages, etc.
- Underwriting (2-4 weeks): This is the step where the lender rigorously checks all the information and property details. Some of the reasons for the delay may be that supporting documents have not been provided in full or that the client’s financial status is more complicated than what has been revealed in the documentation.
- Appraisal & Inspection (2-4 weeks): The value of the home is established to estimate its market value, and the home is inspected. Some may take longer when repairs are required or when the appraisal is lower than estimated.
- Closing (2-4 weeks): After you sign all the papers, the whole closing process ends, and you become the legitimate owner of the house.
Factors Affecting Your Finish Time
While the above provides a general timeline, several factors can influence how long your mortgage journey takes:
- Your Credit Score: This is faster, especially if you have a high credit score, generally above 740, which indicates that you are a responsible credit user.
- Down Payment Amount: A larger down payment means less of the loan is required, which also translates to quicker loan processing.
- Loan Complexity: Non-conforming loans, such as jumbo loans, which have higher loan limits, thus require many factors to be met before qualifying for a loan.
- Market Conditions: A competitive housing market may necessitate speed in making some decisions, which might mean a faster closing.
- Lender Efficiency: Some lenders are famous for processing such applications faster than others. Select a good company with a clear loan procedure and then conduct research on the company.
Ready to Break the Mortgage Marathon Record?
Getting a mortgage shouldn’t be a marathon of frustration. At America Lending Group, we’re dedicated to a smooth and efficient loan process. Our experienced team is here to guide you every step of the way, from pre-approval to closing. Call America Lending Group for a free consultation today, and let’s get you into your dream home faster!