How Long Does the Mortgaging Process Usually Take?
Once people get their hearts set on buying a Los Angeles area home it can be a long and arduous process while waiting for a mortgage approval and escrow. It seems like it takes forever before signing papers and getting the keys to your dream home, but in reality in most cases it only takes about 50 days.
Since home ownership is such a huge commitment, it’s only natural for the process to take some time to make sure you’re fully ready for this important step. Let’s explore what the average mortgage process looks like and how you can help to expedite it.
A General Overview
Although the mortgage process lasts only 50 days, there’s actually several steps that need to take place from start to finish. Sometimes individuals with stellar credit history and all of their financials in order can receive a type of pre-approval in as little as three days, but even in this instance, there are still many other moving parts to consider. If you aren't using a traditional home mortgage loan, such as the FHA Loan, the VA Loan, or the USDA Home Loan, you may have further requirements or stipulations.
Any confusion on your credit report or large deposits in your bank account can delay the approval process, and for those with more questionable resources it might be several weeks before an approval takes place. This length of time is referred to as underwriting and can sometimes create a back and forth scenario if there are a lot of questions pertaining to your application.
Keep in mind that home inspections, securing interest rates, and a whole host of paperwork all come into play before actually signing the documents and moving in to your Agoura Hills home.
Being Proactive Can Help
Reducing the time it takes for underwriting to complete your approval should be on the forefront of every applicant’s mind and luckily there are some things you can do to make this a reality. First and foremost, ensure that the application is filled out completely, as any missing information will be needed later on during the home buying process.
It also helps to have financial information at the ready, as questions do arise during the process. Complete bank records, tax returns, and pay stubs are all documents that should be able to be gathered quickly if they are requested. As mentioned above, anything questionable will be inspected, so take the time before applying to get things in order.
Steps can be taken months in advance to clear up issues on a credit report, and new loans should be kept to a minimum leading up to and during the time of the application. Often times underwriters will request written statements about things like large one time deposits into a bank account or the sudden elimination of debt, so be prepared to tackle these items too.
There’s A Reason For The Timeline
Ultimately, it’s the underwriter’s job to discern who is in a favorable enough financial position to purchase the home they desire. It’s this system of inspection and information gathering that often times can help homeowners in the long run; imagine if everyone was approved the next day for their dream home, and then found themselves unable to pay the mortgage after moving in? It’s the avoidance of this situation that leads to the 50 day timeline, but as long as things are clear and in order, you’ll probably be moving in faster than you thought.