How Long Will it Take to Process My Mortgage Loan Application?

Usually it takes about 40 to 60 days, although it can take as few as 30 days and as long as 90 days for some transactions. The actual time depends on how quickly the lender can get an appraisal of the property, a credit report and verification of employment and bank accounts.

You will need to provide employment information, most recent bank statements for any and all accounts, evidence of mortgage, copy of homeowners insurance to verify that you have current and sufficient coverage on your home.

Usually it takes about 40 to 60 days, although it can take as few as 30 days and as long as 90 days for some transactions. The actual time depends on how quickly the lender can get an appraisal of the property, a credit report and verification of employment and bank accounts.

The qualifying guidelines can relate to your income, employment, assets and liabilities, and credit history. Some lenders would rather deal with individuals with excellent credit and other lenders will accept individuals who are late in their bills, with low 500 credit score and they can even help individuals who are currently in chapter 13.

To effectively compare different lenders’ programs, ask for the annual percentage rate, or APR, of the mortgage interest, which is generally higher than the initial quoted rate because it includes all lenders’ fees.

A lender can charge one, two or more points. There are two kinds of points: Origination fee: Covers the lender’s cost of preparing all the documents associated with your mortgage. Discount points: Each point is one hundredth of the loan amount. On a $100,000 mortgage, one point is $1,000. Generally, the more points you pay, the lower the interest rate on the loan.

The interest rate of the mortgage you’re applying for may go up or down before you close on your home loan. That’s why it may be wise to lock in the rate for a specified period of time, rather than let the rate float until the closing. Be sure to ask the lender if there is any fee for locking in the rate and whether you also can lock in points.

Mortgages come with a list of fees. Ask for a list of estimated closing costs before applying for the loan. Lenders are required to give you a Good Faith Estimate. Also, remember that some fees must be paid upfront such as the credit report, property appraisal and loan application fee.

The prepayment question is for all loan shoppers. Find out the duration of any penalty period and how the fee would be calculated. Some penalties are 1 percent of the loan amount: others are more complicated. Knowing how much the prepayment penalty would be is important if you think you will sell the home before the mortgage is paid off.

ARM rates are cheap right now. Still, with an ARM, your rate and your payments will go up when rates go up overall. Adjustable rate may be good for you if you intend to stay in your home for just a few years. Find out the how often the interest rate will be adjusted and the rate cap.

Andre Plessis

Andre Plessis
"The Mortgage Guru"
"A Mortgage Professional whose primary goal is to provide the expertise, guidance and skills necessary to obtain the best mortgage to meet your personal needs".
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P.S. If you are at all intimidated or unsure about the mortgage process if you don’t understand how to evaluate your options in getting a mortgage loan our 15 key questions will help you feel comfortable that you are making the best decisions. Also if you are in the process of refinancing your home with anyone, CALL ME and I will let you know if you are being offered the best loan option based on market conditions and your financial situation.

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