Unfortunately, the honest answer is that it depends on a number of things. The most important is how long it takes you to find a property you want to call home. It could take months or possibly years if you include the search as part of the process. You want to be thorough, when it comes to choosing a house. The style of the house, the size, its location, the state of the neighborhood, the quality of schools (if you have children) community amenities, and anything else you consider important or relevant to the process such as travel time to and from work or shopping should be kept in mind. Let’s take a look at how long the mortgage process can take.
Tips for Streamlining the Mortgage Process
How long it takes the lender or broker to handle things on their end, is also part of how fast you can secure a mortgage. You should also research the different mortgage lenders available to you, once you’ve chosen a property in California. Compare price quotes from multiple companies and consider down-payments and loan sizes. You want to do business with trusted professionals who will assist in finding the lowest housing rates.
Get pre-qualified for a loan in California. It gives lenders a quick feel for your finances and provides you an idea of what you can afford. Getting pre-qualified takes just a few days. A pre-approval letter is for a candidate looking to purchase a home. It is not a loan commitment. A home appraisal is required before a commitment can be issued along with verification of income, assets, taxes, and insurance. The pre-approval process is simple, and you need to provide the following information to obtain one:
- Authorization to pull credit
- Applicants full name(s)
- Contact numbers and email address
- Social Security Number
- Date of Birth
- Current address (do you currently rent or own?)
- Income (gross)
- Assets (liquid and non-liquid)
- Any other real estate owned
- If you currently own, do you intend to sell prior to or simultaneous to a purchase?
- Estimated purchase price of new home
- Amount of cash you plan to put down (indicate where funds are coming from i.e. savings, gift, proceeds from sale of current home)
- Estimated taxes and insurance costs on the new purchase property
- Once this information has been collected, a pre-approval letter can be generated and issued, and it is good for 90 days from the date of issuance.
What’s the Timetable?
Getting pre-approved in California can take seven to sixty days. When you are pre-approved for a mortgage, a lender has looked at your credit scores, your employment history, and your income. They then determine which loans you qualify for, the maximum amount you can borrow, and the interest rates you will be offered. So you’ll know at the start how much home you can afford to buy.
The length of time needed to approve your loan application is also going to factor into how quickly you can expect to receive your mortgage. You’ll need to provide prospective lenders with proof of income and employment, a list of assets, credit reports, and details concerning the property you want to buy, along with personal identification and information.
The actual loan approval process can typically take anywhere between seven and sixty days. This happens after you’ve made an official offer on a property. Being well organized can expedite the loan process. Have all required documentation ready whenever it’s needed and provide it when asked in a timely manner. Unfortunately, you don’t have total control over the speed of the entire process but being efficient with your responsibilities supports the process. Facilitate constant, clear communication between you, the lender, and the seller. Catch and resolve any little snags before they become big problems. Do your research beforehand to avoid surprises or unexpected complications. In short, be prepared.
Golden State Mortgage Can Help
At Golden State Mortgage, we are a California-based mortgage company. We want to help you through every step of financing your new home. Fill out the quick contact form or call Golden State Mortgage today at 1-800-536-8171 to speak with one of our California mortgage specialists and get a free good faith estimate.