How Long for a Home Loan to Close?
Many mortgage loan borrowers in California, Illinois and Florida wonder how long it takes a mortgage loan to close.
How long does for a home loan to close is the biggest question for first time home buyers
Most of my mortgage loan borrowers close their home loans in 30 days or less. There are cases where it takes longer for a mortgage loan to close. For a mortgage loan to close in 30 days or less, I would need the cooperation of the mortgage loan borrower. I will explain how the mortgage process works and what it takes for mortgage companies in Chicago and lenders like myself to close in 30 days or less.
First time home buyers
Whether you are a home buyer and are seeking a new home purchase mortgage loan or are a current homeowner and want to refinance your current home loan, there are steps to take in order for your mortgage loan to close timely. The first step is your mortgage application. You can apply here by clicking on the APPLY NOW icon on the top left section of my website, www.gustancho.com . It is the 1003 online mortgage application. It is a 4 page secured mortgage application where it asks your asset and debt obligations as well as your income information. You need to be specific and accurate on the information you state because everything will be verified via tax returns, W2s, bank statements, and credit reports.
Chicago Mortgage Companies: Applications, Credit, and Approval
Once you have submitted your online mortgage application, I will then pull your credit from the three credit reporting agencies. Once I get your credit report and verify your information on your online mortgage application, I will submit your loan application to our automated underwriting system for an official automated approval by Fannie Mae or Freddie Mac. With this automated underwriting system approval, I will be able to get your mortgage rates and terms and the maximum mortgage loan amount that you qualify for. I will then issue you a pre-approval letter for you to start shopping for your new home. All this can be done in less than a day.
Week One: Once you have found a home you want to buy, send me the real estate purchase contract along the addendums so I can start processing your mortgage loan. I will email you the mortgage application along with the proper disclosures, either California, Florida or Illinois disclosures, for your signature. Once I receive your signed mortgage application along the requested documents like 2 years tax returns, 2 years tax returns, recent pay stubs, and recent bank statements, I will submit your application to processing. If all of the information you have stated on your mortgage application matches the documents you have sent, we are now ready for underwriting. All of these tasks will be completed by the end of week one.
Week Two: A mortgage underwriting will be assigned to your mortgage loan application and will start verifying every section of your mortgage application. The underwriter will order a verification of employment and do an IRS verification of your tax returns and make sure you have not had an overdraft on your bank account in the previous 12 months. If everything matches, the underwriter will give a thumbs up to order the appraisal. The appraisal will be ordered by the mortgage loan processor. The appraiser should contact the seller’s agent and make an appointment to schedule the physical site appraisal by the end of week two. It normally takes no longer than a week for the appraisal to come back.
Week Three: On week three is when we should be getting the appraisal report. If everything is cool with the appraisal, the underwriting department is at work again and your mortgage file will be review for a final review.
Week Four: This is when we get a clear to close and the mortgage lender prepares all of your mortgage documents. We contact your insurance agent to make sure that the new home is properly insured and we set up the time and place of the real estate closing.
Delays in Mortgage Loan Closings
The above scenario is a typical 30-day mortgage loan application process which is much like all Chicago mortgage companies. You can see where delays can come in. Delays on a mortgage loan to close comes in when documents are missing, employment of verification get delayed, explanations are missing, or an appraisal comes in too low.
If a mortgage loan borrower is prepared with all of the required documents and cooperates with his or her mortgage broker, a mortgage loan should close in 30 days or less. Unfortunately, many times a mortgage loan closing does get delayed due to unforseen circumstances.
If you are looking for Chicago mortgage companies for home purchase mortgage loans or a refinance mortgage loans in Florida or Illinois, please contact me at www.gustancho.com.
I can help you get the best available mortgage rates and terms in Florida or Illinois and try to close your mortgage loan in 30 days or less.
Gustan Cho, NMLS ID 873293