Loan Process Timeline
Understanding a loan's timeline can help ease the stress of applying for a mortgage loan. For your convenience, we have outlined a typical loan timeline. Please understand, loans can vary greatly, and there are differences between a purchase loan and a refinance of a loan. Here are the general timeline rules:
- Loan Information Collection:
- Loan Processing:
- Home Appraisal:
- Loan Underwriting:
- Loan Approval and Condition Collection:
This is when the initial paperwork is collected from the member.
Time: 1 to 5 days. It ALL depends on how fast the member returns the information.
This is when the required initial Government mortgage disclosures are sent to the member within three (3) days of the mortgage application being taken. These documents are required from every member before the loan process can start.
Time: 1 to 3 days from receipt of the completed application. It ALL depends on how fast the member returns the information.
This is when we have all of the documentation from the member and are preparing it for the underwriter to review. Up front verifications are ordered and collected here.
Time: 3 to 4 days. The more complicated the file, the longer the processing time.
This is when the property that the loan is tied to is being evaluated.
Time: 3 to 7 days. Members are encouraged to make the appointment with the appraiser as quickly as possible to avoid delaying the process. A loan can not be underwritten without a proper appraisal. Once an appraisal is physically done, the appraiser then takes 3-4 days to research comparables, consider square footage, and render their decision on value.
This is when the loan is packaged and given to the underwriter (the person responsible for making the credit decision on the loan).
Time: 2 to 5 days. The more complicated the file, the longer the underwriting time.
This is when you get to say "Congratulations!" to the member on their loan approval. You are responsible for calling the member, celebrating with them, and then collecting the final loan conditions to complete the process.
Time: 1 to 5 days. It ALL depends on how fast you call with the Congrats! and how fast the member turns in the conditions.
Total Time Frames
Loans should not take more than 30 to 60 days total from beginning to end (unless a purchase escrow is scheduled to be longer), but vary widely due to the member's ability or inability to:
- Return Paperwork and Disclosures
- Complete required paperwork (i.e. avoid missing signatures, missing requested documentation, etc.)
- Make timely appointments with appraisers, inspectors and the escrow company
- Avoid rate or loan program changes
- Respond to questions asked by the loan coordinator, processor, etc.
The loan process is a relatively smooth process. But when members get frustrated, it usually has to do with timelines related to the process. Realizing that everyone is working for the same goal (to close the loan), it helps to keep a cool head if trouble arises. That way, everyone can work together to resolve the issue at hand. Keeping members aware that they have a big part in the process (and in keeping timelines shortened) can help members understand the important role they play.
Call us anytime at (800) 795-1333 with questions.