When you ask, what you think is a simple question, “How long does it take to close on a mortgage?” You might expect a simple answer, but in truth, that simplicity you are seeking in an answer is nearly impossible to give. There are so many determining factors that you should know about.
Closing time is different for each varying loan type
Individual buyer/seller situation is different
Each lender has its own processing efficiency
According to Fannie Mae, “the average closing time for a new purchase is 46 days, and 49 days for a mortgage refinance.” A common guestimation on how long it takes for a typical mortgage is around four to six weeks to close from application date.
Delays in closing are due to underwriting requirements. After your loan file is assembled by your loan officer, they submit it to a mortgage underwriter. If anything is missing, it goes right back to the loan officer. This is one of the reasons it’s important to submit every document your loan officer requests. The entire approval process will be quicker if you submit all documents requested in a timely manner.
If you can’t find or don’t have any of the supporting documents that are being requested, you may be unable to close by the date listed on the contract and will need to ask the seller for more time.
Here are some of the most common reasons for delays in closing:
Unable to trace down payment funds
Inexperienced loan officers
Late payments recorded on accounts listed on your credit report
Outstanding debt that needs to be paid prior to closing
Additional updated bank statements needed
Delayed final walkthrough
Issues found in the title search
Liens or judgments on the property
Incomplete loan application
Agreed upon repairs not completed
How to close your mortgage on time:
Have all of your closing documents submitted
Make sure your funds are readily available
Don’t make any big-ticket purchases
Hire experienced people
Respond to all requests in a timely manner
If you’re planning to purchase, refinance, or are genuinely interested in learning more about mortgage rates our experienced mortgage professionals would love to sit down and discuss your needs. We look forward to hearing from you!
The Certo Team 55 N. Arizona Place Suite #103 Chandler, AZ 85225 602-429-6789
Contact a licensed housing specialist now! 602-429-6789