One concern raised by those who apply for a mortgage is the time it takes to be approved for a loan as well as how long the offer is going to last. The primary reason why approvals are delayed is that the borrower is not always prepared with all of the required information.
Some borrowers try to get an estimated mortgage or a mortgage in principle in order to get an idea of how much they can borrow. This is helpful in shopping around for potential properties for sale that are within your price range. This is done by the broker after asking you some simple questions about your finances. For people with good credit rating, the mortgage broker can prepare a certification proving that you’re eligible for a mortgage.
This can help you deal with real estate agents as you look around for properties on the market. As a reminder, a mortgage in principle is not the same as a mortgage offer. It’s only based on limited information about you. Once you go through the actual application process, certain things may change such as the amount of the deal as well as the interest rate. But in general, this is a good way to get an idea of how much a lender is willing to give you.
How long does it take to apply for a mortgage?
The application process itself does not have to take too long. With stricter approval guidelines, you may expect to spend a couple or so hours being interviewed by the broker but you won’t have to spend too much time as long as you came prepared with the necessary paperwork. Look for mortgage guides with a detailed list of requirements to help you.
You’ll need to provide supporting documents related to your finances. This includes bank statements, payslips, utility bills, and the like. You can even schedule an application with a broker in advance so that you can prepare the documents before the actual appointment. For the most part, the broker will apply mortgage affordability calculations based on the information you provided proceed with the process.
After the review, you may expect that the broker requires a report for the value of the property you wish to buy. The only time delays are experienced with a loan applications process is when the borrower does not come prepared will the necessary information. If there are any hiccups involving your credit check, this can also add to the delay. To be sure, check your credit score before getting an appointment with your broker. See that all details are in order to avoid having to go back and start over.
All in all, there is no other way to speed up the application process except by coming in prepared. While there are other factors that may affect such as individual lender practices or the volume of applications being entertained, in general, it should be straightforward.
The Validity of a Mortgage Offer
A mortgage offer will be valid for around three to six months after approval. Once again, this depends on whether you’re applying for a new mortgage or a second mortgage on a home. Every lender has their own policy circling around this ballpark figure. For this reason, you should always ask beforehand how long the offer is going to last. Any delays you expect in acquiring the property should be taken into account. The longer the offer period lasts, the better it will be for you. You wouldn’t want to agree on a short-term offer without having all the details ironed out. Don’t hesitate to talk to a mortgage broker for advice. Some of them are willing to entertain questions without charging fees.