Unless you have a significant amount ready in cash, seeking approval for mortgage loan has been deemed a critical aspect when buying a new property or home. It would be pertinent to mention here that mortgage approval process could take a significant length of time ranging from thirty days to several months. It would be based on the status of the market along with personal circumstances of the borrower.
Find below what to expect from process.
- Prequalification mortgage letter (one to three days)
You should apply for prequalification mortgage letter to a mortgage lender. It would help you get an idea on how much loan could be disbursed to you. The process would take roughly one to three days. You would be required to provide the lender with requisite information on credit history, asset, income, down payment and debt, if any. Accurate responses would receive easy approvals
- Preapprovals for mortgage (three to several months)
Prequalification would come handy, but you would require preapproval for mortgage loan. It would help you quicken the process for final approval of mortgage loan. Therefore, you should not wait on the step, if you wish to enter into your new home without any delay. Preapproval could take from three days to several months depending on your personal issues. In order to quicken the process, you should prepare important financial documentation to be submitted to the moneylender.
- Final approval for mortgage
When the offer made on the home has been accepted, the time would be for final approval on mortgage. Prior to giving the final approval, the lender would conduct appraisal on the house, verifying the market value of the home. House appraisals would be protection for lenders from offering exorbitant mortgages on houses not worth the amount.
A licensed appraiser would do appraisal on the house. The process would take around two weeks. However, once the house appraisal has been completed, the final approval would take two days.