July 30, 2010, Newsletter Issue #229: Average Time Period to Get an Approval and Close a Mortgage Loan

Tip of the Week

Depending on the type of financing and property involved, you will encounter some different time frames in getting approved and then closing your mortgage loan. Here are some estimates for your consideration. Remember these are estimates only.

Approval time period from formal submission date of an application:

Full documentation loan and single family home purchase: two to four weeks. Limited doc or stated income and single family home purchase: two to three weeks. Refinance single family or multi-family home: two to three weeks. Full doc or stated income multi-family purchase: two to four weeks. Investment property purchase: two to five weeks. Refinance of investment property: two to three weeks. Closing time period from formal Approval date of an application:

Full documentation loan and single family home purchase: two to three weeks. Limited doc or stated income and single family home purchase: two to three weeks. Refinance single family or multi-family home: two to three weeks. Full doc or stated income multi-family purchase: two to three weeks. Investment property purchase: two to three weeks. Refinance of investment property: two to three weeks. You should plan on a minimum of four weeks for the entire process and a normal maximum will be six to eight weeks. The time frames depend on how fast you get your personal information to your lender, how quickly your source gets the property appraisal and other third party documents, and how efficient your closing agent (attorney or escrow company) can assemble your documents and schedule a time to meet.

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