Let's Talk the Approval Process

"How long does it take to get approved?”

This is a question we get a lot here at 1st Rate Mortgage — and with good reason. People are so eager to move into their St. George, Utah home and start the next chapter in their lives. We get it. Buying a home is exciting and you don’t want to wait any longer than you have to.

However, in the lending world, we’re subjected to different timelines because of industry regulations. That’s a stark contrast to the age of instant gratification that many younger buyers have known their whole lives. We’re used to quick responses and actions. Emails and text messaging have contributed to this expectation. But some things in life require more time for good reason. Home loans fall into that category. So how long does it take to get a mortgage? Let’s break it down for a minute.

The mortgage process has many steps, including getting pre-approved, getting the home appraised and getting the actual loan. In a normal market, you can expect this process to take about 30 days, on average. However, busy periods might extend that timeline to up to 60 days, depending on the lender. There are some factors that can negatively impact the schedule. For instance, if you as an applicant have any issues like a low credit score, previous foreclosure, or overwhelming debt, it could prove to be more time-consuming and involved.

Above all, know that when your loan is in the underwriting phase, you need to be on call and comply with requests. Respond in a timely manner to document requests and follow-up questions. Do not take any follow-up personally — it’s designed to ensure that you’re a good candidate for a loan.

On that note, there are things you can do to expedite the process somewhat. For example, prepare your important financial documentation to submit to your lender. Your lender will let you know what they need but in general, you’ll need to have the following on hand:

? Driver’s license
? Social Security card
? Most recent 2 months of bank statements
? Most recent 30 days of pay stubs
? Most recent 2 years of W-2s
? Most recent 2 years of federal tax returns

Your credit report is another important factor in approval. The lender will review and the data will provide them with a very clear picture of your candidacy for a loan. This will be indicated in a preapproval letter, which is valid for about 60 to 90 days.

In short, there’s no specific length of time it takes to get a mortgage per se. There are a lot of pieces to the puzzle that must be considered and reviewed with a fine-tooth comb, including your financial health. Suffice it to say if you’re thinking of buying a home in the near future, the sooner you start the process the sooner you can address any snafus and position yourself for success.

When in doubt, your loan officer will be available to help you transition through the process as seamlessly as possible. If you have any questions about gathering documentation, get in touch. They’ll be happy to share their knowledge and expertise with you.

If you’re not yet ready for this major commitment, it’s better to wait until you’re better equipped to take the plunge. When the time is right, we’d love to be a resource. We’ve been helping home buyers in St. George finance the home of their dreams for many years and we love what we do. When you’re ready to make a move, 1st Rate Mortgage is here to help! Give us a call to learn more about your financing options.