The time between the closing of the purchase of a home and the approval of the mortgage is between 30 and 50 days; the signing of the documentation can take up to an hour, depending on whether there are any problems.
You can process the mortgage approval within two days of the home appraisal. The total procedure can take at least two and a half weeks for full support.
The time before closing in which the mortgage loan can be approved
The recommendation is that before you get an actual mortgage, you should first have a pre-approval, it is an optional method, but it will offer you many benefits. Among them, you will understand the affordability of your mortgage, it makes you look like a serious buyer, and it assures you of a low-interest rate.
Can have the pre-approved mortgage loan within 90 to 120 days before the closing date of your home purchase. However, this result does not guarantee that your loan has been approved.
To avoid getting negative responses, make sure you have no major changes in your financial situation during the purchase period. Your lender will review your payments and ability to bring you current.
Does the closing date indicate that the loan is approved?
The closing date is an indication that the transfer of title to the new owner has been completed. At this point, both parties, including the attorney, meet, review and sign the mortgage loan documents.
It will verify the down payment, purchase price, closing costs, and title to the home, meaning that the closing date does not indicate that the loan has been approved. The buyer signs the documents prepared by the attorney or notary on that day.
You must be sure to read them correctly because they are the documents related to the mortgage loan and the purchase of the property. The buyer will receive the amount of the remaining down payment and closing costs, plus attorney’s fees and commissions.
Payment is made by bank draft; upon confirmation of receipt of the money, the attorney or notary will proceed to register the purchased property at the Title Deed Office, at which time the transfer is official.
Can the mortgage be denied after closing?
You may receive a mortgage denial after closing; banks and mortgage lenders can back out of mortgage commitments and reject your application. It’s not something that constantly happens, but there are situations where this is more likely to happen, such as
- It is likely to occur when you have inconsistent, incorrect, or inaccurate information on the mortgage application.
- Denial is also usual when there are changes in finances, such as a new additional loan, problems with debt repayment, or debt status.
- Title issues can be an issue.
- New negative results on your credit report affect approval.
- Mortgage denials are influenced by difficulties or changes in the appraisal report due to additional findings about the home’s physical condition.
It is advisable to avoid any economic changes during the application that usually results in the mortgage cancellation.
Mortgage Closing Time
The time it takes for a mortgage to close is between 45 and 60 days, starting from when you apply for the loan until the day the funds are sent. The time varies according to different factors.
It will depend on the type of loan requested, your credit profile, the type of loan requested, and whether you applied for pre-approval. The estimated timeline is as follows:
- Home negotiation: 1 – 5 days
- Escrow: 5 – 10 days
- Title search and title insurance: 1 – 2 weeks
- Home inspection: 1 day
- Finalize purchase agreement: 1 – 3 days
- Complete mortgage application: 1 day
- Home Appraisal: 5 – 10 days
- Mortgage loan approval: 2 – 4 weeks
What if I don’t hear back after closing?
You will almost always get an answer or explanation days before the mortgage closing; if the day arrives and you have not heard back, you should contact your attorney and the lender to obtain information on your application.