Reader Question: How Long Does It Take to Get Mortgage Financing?
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Every now and again I receive a question from a reader. I woke up this morning with this question in my inbox:
How long does it take to get mortgage financing and appraisal?
First of all, it is important to note that appraisal is usually part of the financing process. Before the financing is secured, the mortgage lender will require an appraisal. The mortgage lender usually arranges for the appraisal with the seller, and this is usually done so that financing can go through within 30 days. (Remember to lock in a low mortgage rate when you can. Average mortgage rates tend to rise and fall regularly, so you want to get a lower rate if possible.)
30 days, however, is merely the average. It can take as little as three weeks to secure financing, or as long as six weeks (or more). Depending on the volume of homes being sold in your area, and how quickly your documentation can be gathered and verified, financing approval varies. And this is just if you manage to make it through the preliminaries for pre-approval. Sometimes, after starting the process, a mortgage lender will find something that is undesirable and pull the plug altogether. There are stories of people who have had their mortgage financing fall through two or three weeks into the process.
Increase your chances of getting faster mortgage financing
You can improve your chances of receiving faster mortgage financing. However, it requires some advance planning and knowledge. Here are some things that you can do:
- Know your financial situation and be realistic about it. Understand what you can afford.
- Know your credit score, and, if needed, take 60 to 90 days to work to improve your credit score.
- Gather documentation for your income, assets, identity and other information quickly and turn it in as soon as possible.
- Make appointments in advance with your mortgage lender, and try to schedule them earlier in the day, so that you are there first.
- Be available to answer questions and hunt down more documentation as needed.
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