Over the last few months I have had several clients ask how fast can we close? The answer depends on how quickly you can get the required documentation to me and how fast the appraisal and title work get completed! Typically it takes about 30 days, however I have closed mortgages in 7-10 days. That is not the norm and it is not easy!
The first step in the loan application and if you have all the required income and asset information at that time, it helps. After you have an accepted purchase agreement and have done an inspection, the lender will order an appraisal and title work. Appraisals vary in the time it takes to get them done, some are very fast, others take a couple weeks. Due to the new regulations with appraisals, loan officers do not have contact with appraisers as they did in the past. This can slow down the process.
After your appraisal and title work have been recieved, your loan processor will submit the file to underwriting. Sometimes the initial approval is clear to close and you are ready to close immediately, other times there may be some conditions that need to be met. Your loan officer will contact you and let you know what is required to get the final approval. The quicker you get that information to the loan officer, the faster you can close.
Once the loan is final approved, the processor or the closing department will prepare the documents for closing and get them to the title company.
With new regulations regarding the truth in lending and initial APR, if the final APR is off by a .125%, we are required to re-disclose the truth in lending form. That can delay your closing by 3-7 business days. With the new good faith estimate, if there are changes made to the good faith it has to be re-disclosed. That will not necessarily delay your closing, but you have to be aware of the changes.
Closings can take place quickly, but it means everyone needs to work together. We like to see about 30 days to get everything done in a timely manner. If you need to close quickly, you will want to ask your loan officer if it can be done in time.
Leslie Vanderwerf, Advisors Mortgage - Email – Website
wisdom in the mind is better than money in the hand.
This was an age of innocence and happiness.*