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Transaction Timelines: Tips for hitting your Home Financing Deadlines
Closing a mortgage loan is one of the last phases of the home buying process, but one of the most important, as you cannot purchase a home without the money to back it up. Having a strong understanding of what makes up the home closing process will not only help prepare a future home buyer for purchasing a home, but ensuring the process runs as smooth as possible. Debra Roberts, a Mortgage Advisor with Samuel Scott Financial Group, will help explain transaction times, what can speed them up, slow them down and how the type of loan you have will impact your closing time.
Most loans will typically close between 30-45 days, depending on whether or not it is a purchase or refinance. A purchase will have priority over a refinance, due to fact that the lender has a specific closing date that they must meet.
The loan closing process begins with a preapproval. The preapproval part of the process can take anywhere from 1 hour to 24 hours, depending on the information that is given to the lender. If the borrower provides all of the needed documentation, they will have a more complete package, which will allow for a desktop preapproval to be done. During this time, a lender might require tax returns, pay stubs, bank statements, verifications of employment and any additional information deemed necessary.
Once a preapproval has been generated, the loan application will then be completed. Typically, this application process takes an hour. The borrower will then be responsible for providing the information/required documents needed to back up the application. While many documents might have been provided during the preapproval process, it is necessary to obtain the most recent information at this time. For example, one might need an updated pay stub or bank statement.
After this information has been collected, a loan processor will review the loan application to ensure all documentation is accurate and complete, before sending it to the underwriting department. Once the underwriter receives the loan application, the application is evaluated, making sure everything will fit the specific loan program requirements. At this stage, a conditional approval has been set, meaning that the borrower’s loan is approved based on specific conditions.
Once the loan papers have been created, they are then sent to escrow/title, who will add additional documents to the borrower’s file. After this has been completed, a meeting can be scheduled for papers to be signed. The funding timeline will generally take about 24 hours after the receiving of documents back from escrow.
There are certain types of loans that will take longer to fund, such as short sales and jumbo loans. Click HERE to continue reading and to find the typical closing time for a few different types of home loans.
Samuel Scott Financial Group is a boutique mortgage company recognized for superior customer satisfaction and the way they tailor the residential loan process to every individual client. Todd “Samuel” Pianin and Brian “Scott” Reynolds founded the company on the principles of long lasting relationships, and a sincere honest approach to every single individual we serve. Consistent and reliable, Samuel Scott Financial Group has been selected as The
President: Todd Pianin
Vice President of Sales: Russ Schreier
Mortgage Advisors: Christian Alvarez, Dean Brown, Mark Buchanan, Mitch Palmer, Brian Reynolds, Debra Roberts, Mark Robertson, Alex Scoma, Brian Shaw, Keith Sims, David Talbott.
Samuel Scott Financial Group is licensed by the CA Dept. of Real Estate license #01458652 and NMLS identifier 235584. ©2011 Samuel Scott Financial Group. All rights reserved.