How Long Should it Take a Home Loan to Close?

Closing the loan is all part of the process of buying a home or getting a refinance. If you get approved for a mortgage loan, you can move forward; if not, you’ll need to step back and reconfigure. Time is always of the essence whenever you’re applying for a home loan. But just how long does it take for a home loan or refinance to close?

Typical Length of Time…
Home loans can take anywhere from several days to several months. Larger lenders can take 60 to 90 days, or more, to approve and close a loan. This is standard across all big lenders. Other, smaller to mid-sized lenders can close a home loan in only 10 to 15 business days. This is possible because they employ in-house processing and underwriting staff who make it a priority to handle each client’s loan with urgency. When all the individuals who work on a loan throughout the process can work together as a comprehensive team, then there’s no outsourcing to drag down the flow.

When a Home Loan Takes Longer…
There are a number of reasons why a home loan might take longer than usual to close. For example, if an applicant falls right in line with the minimum requirements for the loan (that is, does not exceed or clearly fall short of the requirements), the lender is forced to make a decision. This can prolong the closing process as the lender runs calculations to determine if they’re able to accept the application or not.

While this happens from time to time, the biggest reason that home loans take longer than they should is because the borrower does not give it enough attention throughout the process. This is one thing lenders often see that can be easily avoided. Whenever a lender who cares begin a home loan application process with a borrower, they should always make sure to share the same level of urgency in completing all necessary steps to close as early as possible.

The sooner that each step is completed, the sooner the home loan will close.
As a borrower, remember that lenders can only close in 15 days or less, if the client is also following the process requirements quickly. This means answering and returning phone calls from their Loan Advisor, completing paperwork, and scheduling the appraisal order in a timely manner. If an applicant sits on a step or there are delays in returning a phone call, the process is prolonged.

Work with a lender that maintains the best programs in the country, accompanied with the highest level of customer service. When you work with an A+ lender for your mortgage loan, you’re working with a team that can make the process easier and faster than with anyone else!

Written by: Bobby Stines, Director of Lending at Royal United Mortgage LLC
Published: 8/13/2015