Want to get quick cash to buy a house? For that, you need to know how long it takes to secure a loan from various sources. Most mortgage lenders and banks will need some documentation during the initial mortgage loan application. This is because mortgages need to follow federal lending standards.
If you’re applying to refinance home loan, you need the following:
- A copy of the deed of trust
- A note
- Preceding settlement statement (if available)
Online lenders and conventional banks or credit unions are the two types of lenders. Within each group, speeds can vary, so ask lenders how long you should anticipate waiting before beginning the application process.
Your financial condition determines the time it takes you to get a mortgage loan. However, in the end, each lender’s process may differ. So, here’s an idea of what you should expect when applying for a mortgage from an online lender or a traditional bank / credit union.
Time for Initial Mortgage Loan Application for Online Lenders
Although online lenders usually offer a quick and easy application process. Getting money in your bank account can take several days. An online lender may be an ideal solution if you have limited time to look around and fill out forms. However, they’re are willing to wait a few days for the money to come into your account.
Most online lenders allow you to apply for a mortgage loan in just a few minutes. You enter basic information like your Social Security number and monthly salary to get a preliminary pricing quote. The lender will review your information and examine your application if you want to proceed.
Time for Approval
An online lender often takes a couple of days to accept a loan request.
Funding after Approval
Soon after accepting, the lender’s transfer loan proceeds to your bank account. Again, this procedure can take several days, depending on bank holidays and other circumstances.
Time for Initial Mortgage Loan Application for Credit Unions and Banks
You would possibly be able to get a mortgage loan from a banking concern or a bank. Although the time frame varies from bank to bank, these banks can occasionally fund your loan within one day. If you have access to several banks, find out how long it takes to receive a loan from each one. Then, you may choose the best option.
Depending on your lender, you may do either of the following:
- Fill out an online form
- Give traditional paper application, or
- Work with a bank person to complete the application
Since there is no rapid data verification while filling out forms on paper, it’s easy to submit an incomplete application. Whatever you do, take your time filling out the application to ensure it is comprehensive. It could help speed things up.
Time for Approval
If you need cash immediately, this is a benefit. However, keep in mind that certain institutions may take several business days to examine your application. You’ll have to submit proof of the information you give the lender, and the bank will check your credit history. This process takes time. However, it can be done in one business day if staff personnel are available to fulfill your request.
Funding after Approval
The bank may be able to fund your account the same day you apply. Some may only take one business day, while others require more time.
Determine which initial mortgage loan application is suitable for you by consulting your bank, online lenders, and credit unions. To expedite the procedure, have your personal information ready.
