April 15, 2019 — 6 min read We recognize that one of the most significant life transactions is purchasing a home. We also recognize that this could be one of the trickiest transactions of your life. For that reason, one of our primary goals is to simplify the process as much as possible. Providing an explanation of the general loan process timeline and responding to inquiries such as “how long does it take to get a Closing Disclosure (CD) in a home loan?” is one of the first ways we simplify.
Buying a home is an exciting time, but it can also be stressful, especially when it comes to the mortgage process. One of the most important steps in this process is getting final loan approval. But how long does it take to get final loan approval before closing?
The answer depends on several factors, including the type of loan you’re getting, the lender you’re working with, and the complexity of your financial situation. However, in general, you can expect to get final loan approval within 3-5 business days after you submit your complete loan application.
Factors that can affect the final loan approval timeline:
- Type of loan: Some loans, such as FHA loans, have more stringent requirements than others, which can lead to a longer approval time.
- Lender: Different lenders have different processing times. Some lenders may be able to approve your loan faster than others.
- Complexity of your financial situation: If you have a complex financial situation, such as being self-employed or having a lot of debt, it may take longer for the lender to approve your loan.
- Time of year: The mortgage industry is typically busier during the spring and summer months, which can lead to longer approval times.
What happens after you get final loan approval?
Once you get final loan approval, you’ll receive a Closing Disclosure (CD). The CD is a document that outlines the terms of your loan, including the interest rate, monthly payment, and closing costs. You’ll have three business days to review the CD before closing.
What to do if you haven’t received final loan approval before closing:
If you haven’t received final loan approval before closing, don’t panic. There are a few things you can do:
- Contact your loan officer: Your loan officer can help you determine why your loan hasn’t been approved yet and what you can do to speed up the process.
- Provide additional documentation: The lender may need additional documentation from you, such as pay stubs or tax returns.
- Be patient: The loan approval process can take time, so be patient and don’t give up.
Tips for getting final loan approval quickly:
- Get pre-approved for a mortgage: This will give you a good idea of how much you can afford to borrow and will make the approval process go more smoothly.
- Have all of your documentation ready: This includes your pay stubs, tax returns, and bank statements.
- Be honest with your lender: Don’t try to hide any information from your lender, as this could delay the approval process.
- Be patient: The loan approval process can take time, so be patient and don’t give up.
Frequently Asked Questions:
Q: How long does it take to get final loan approval for a purchase?
A: In general, it takes 3-5 business days to get final loan approval for a purchase. However, this can vary depending on the factors mentioned above.
Q: How long does it take to get final loan approval for a refinance?
A: In general, it takes 2-4 business days to get final loan approval for a refinance. However, this can also vary depending on the factors mentioned above.
Q: What happens if I don’t get final loan approval before closing?
A: If you don’t get final loan approval before closing, you may have to delay your closing date. You may also be able to negotiate with the seller to extend the closing date.
Q: What can I do to speed up the loan approval process?
A: You can speed up the loan approval process by getting pre-approved for a mortgage, having all of your documentation ready, and being honest with your lender.
Q: What are some tips for getting final loan approval?
A: Some tips for getting final loan approval include getting pre-approved for a mortgage, having all of your documentation ready, being honest with your lender, and being patient.
Additional Resources:
- PacRes Mortgage: Your Loan Timeline: From Offer Through Closing
- MortgageMark: Final Approval & Closing Day Overview
Getting final loan approval is an important step in the home buying process. While the timeline can vary depending on several factors, you can expect to get final loan approval within 3-5 business days after you submit your complete loan application. By following the tips in this guide, you can increase your chances of getting final loan approval quickly and smoothly.
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Before the Timeline Starts: Pre-approval & Home ShoppingBefore your official loan timeline begins, you should strongly consider obtaining a full pre-approval from your Mortgage Advisor. For more information on why a pre-approval is important, you can review
- Sales price
- Down payment amount
- Closing date
- Any items included in the sale such as appliances
- Closing agent name
- Amount of seller credit requested for any prepaids and closing costs