Time Flies ...Navigating the Mortgage Process, Part 2

At the outset it might seem like 30 days is an eternity.  This is the customary time period for a real estate purchase to close. But there’s a lot for you and your mortgage company to accomplish from the day you sign your purchase contract until the day we fund your loan. Believe me, the time will just fly! Your real estate agent is far more qualified to explain what needs to be done in regards to the property you are purchasing . I’ll leave that to them. But the evolution of a mortgage is often a mystery to both agents and clients. I hope to clear that up.
 

The blueprint for the mortgage process rarely varies. Don’t get me wrong, it is possible to accomplish this in a shorter length of time but that usually depends in large part, on the efficiency of the borrower and the availability of their documentation. Below is an average timeline:

Day 1   Executed Purchase Contract delivered to Lender

Day 2-3    Loan Application signed. Buyer gathers required documentation (see previous post)

Day 7    Appraisal ordered, providing all home inspections have been completed *

Day 7-14    Processor verifies applicant information, property information, contract terms

Day 14    Appraisal complete and delivered to borrower

Day 17    Loan submitted to Underwriting

Day 20    Underwriting initial approval. Pending conditions identified

Day 22    Submit all documentation to satisfy underwriting conditions

Day 24    Loan cleared to close. Documents ordered for delivery to Title Company

Day 25-26    Documents prepared by Title Company and ready for buyer’s signature

Day 26-30    Signed documents returned by title to mortgage company. Ready to fund and record. Homeowner get’s their keys!
  

*  Unless otherwise advised by your agent, we usually suggest that you perform all property inspections before your appraisal is ordered. This way if the condition of the property does not meet your approval, you have not needlessly paid for the appraisal.

 

*  Generally the appraisal is due one week from the day it is ordered.

A word about rate locks. At any point after your loan application is signed, you and your loan officer will determine the right time to lock your rate. This is a cooperative decision and it is imperitive that you are given enough information to make this choice.

 

The above is relative to a typical transaction. Occasionally there is a stumbling block or two but we’ve gotten really good at overcoming obstacles, and rarely is there one that baffles us. Short sales are a completely different story so ask your agent how they work. After you have short sale approval the transaction proceeds as above.