Just because you’ve applied for a mortgage and provided the right credentials, it doesn’t automatically mean you’ll be approved or you’ll know in time to seal the deal.
Once you’ve chosen a residential property, or you’re advised to pre-qualify for a mortgage, your Lang Realty agent will explain what mortgage underwriting means and how long it may take.
What is the mortgage underwriting process?
Once you’ve filled out all the forms and provided the documents your potential lender requires, it’s the process of checking your ability to repay the loan. Specifically, it’s verifying your income, debts, credit rating and other assets before your lender gives you final mortgage loan approval.
As your agent will advise you, that’s not a given. And the process may take more time than you have in this real estate market that may depend on quick offers and availability for a fast closing.
How long does mortgage underwriting take and what is the usual mortgage underwriting timeline?
Know that approving your mortgage loan application can take as long as 30 to 45 days on average. Before you even apply for a mortgage, you can ask your real estate agent to advise you which lenders are known to respond promptly. Issues with the property appraisal can hold up the process, too.
In the meantime, make sure you do what you can do and there’s nothing missing. Provide all the answers, signatures and the documents requested by the lender in a timely fashion.
And if you’re self-employed, plan ahead. Be prepared to provide even more information, documentation and understand that verifying can take even longer than usual.
