It is important to have proper expectations as to how long it will take to settle on your refinance. There are many factors that can affect the time that is will take to close. Please read on for a basic time line for a traditional FHA , Fannie Mae and Jumbo refinances.
Step 1: Identify a broker/lender that you trust to handle your loan transaction. Do not be fooled by "low cost/hidden fee" internet chop shops. It is important that you do not lose sight of the fact that your mortgage is your LARGEST financial obligation. You would not go to an unlicensed doctor in Tijuana for heart surgery, do not go to a part time loan officer/full time waiter for your mortgage.
Time elapsed: As long or as short as you would like, or you could call me now
Step 2: Complete a loan application, either in person or online. If you have any doubts about the company that you have chosen, it may be a good idea to visit their office for the application
Time elapsed: Online is about 15 minutes, in person should be within 24 hours (this a real time market, today's rate could be gone tomorrow. I suggest acting quickly)
Step 3: Gather all requested documentation to submit to underwriting. This is where YOU control things. It is imperative that you are as responsive and proactive as possible.
Time elapsed: 48 hours
Step 4: Once your lender/broker has received all necessary documentation, they will submit your complete loan for underwriting. All lenders have different underwriting turn times, some are as little as 8 hours, some are up to 3 weeks. Ask you loan officer who your loan is being underwritten by and how long it will take. This will also be the time when the appraisal is ordered. Under the new regulations, the lender cannot order your appraisal until 4-7 days after you have received your truth in lending agreement.
Time elapsed: Most lenders average 7-10 days
Step 5: Your lender will issue a conditional underwriting approval. Most often, the conditions that they ask for will be easy to satisfy (i.e., updated paystub, updated bank statement, corrections to title work etc....) Gathering and submitting these conditions will take about 48 hours. Once submitted, it can take up to 72 hours for the conditions to be reviewed and approved.
Time elapsed: 6-8 days
Step 6: Schedule loan closing.
Time elapsed: Many lenders require that loans are scheduled no less than 72 hours after the cleared to close is issued
Total time elapsed to apply, submit and close your loan : 28-31 days
This is assuming that you do not have anything go wrong, that you do not have a 2nd mortgage that requires subordination and that your lender is working aggressively on your behalf.
What if you need to close faster?
Choice Finance holds a lenders license and has the ability to underwrite loans right here in our Rockville, Md headquarters. This allows us to close your loan much faster than your average mortgage broker. Visit me online today www.choicefinance.net
Contact Josh Burley today to streamline your FHA mortgage
Work with a LOCAL mortgage lender that you can trust. Choice Finance has been serving the DC Metro area since 1996
Apply online now! @ www.choicefinance.net/apply
FHA , VA, Conventional and Jumbo mortgage rates
Sr. Loan Officer
Choice Finance Corp.