How Long Does The Home Loan Process Take?
One of the biggest questions that most buyers have is “how long does the home loan process take?” because their friends, family members, or co-workers may have bought homes, and it’s not uncommon for each person to have a different answer regarding how long the home loan process took for them from start to finish.
We will provide you with a simple four-step explanation of the home buying process so you will know what to expect from start to finish.
Step #1 – Get Pre-Approved By a Lender
This is by far the most important part of the process because you have to know how much of a home loan you qualify for before you actually start house hunting.
To get pre-approved for a home loan you will need to submit your bank statements, tax returns. W2’s and other proof of income for your lender to review. Once they’ve reviewed your documentation it should take them 24 hours or less to pre-approve you for a mortgage loan.
Step #2 – Get Your Home Loan Fully Approved
After getting pre-approved for a mortgage loan, it’s time for you to start house hunting. Once you find the right home you will need to write an offer and get into escrow.
Escrow can last between 12-14 days. During the escrow period, your lender will quote an appraisal and have you sign disclosures from a lending standpoint regarding interest rates and closing costs.
Step #3 – Final Loan Approval by the Underwriter
Once you’ve completed all of the paperwork needed for the escrow process your loan will be sent to an underwriter for final approval.
During this step in the process, you don’t want to make any major changes in your life like getting a new job, car, or putting new furniture on layaway because this could jeopardize your pre-approval and your lender could have to start the whole process all over again.
Step #4 – Sign Loan Documents and Close Escrow
This is the sweetest part of the whole process and a confirmation that all of your hard work to save money for a deposit and get pre-approved for a mortgage loan was worth it.
To learn more about the home loan process, or to view homes for sale in Southern California, contact Fred Sed Realty today by calling us at (800) 921-9231 or click here to connect with us online.