How Long And How To Make It Easier
How long you can expect to wait...
what you can expect to receive...
and how to make the waiting easier.
The time between making your application and
receiving the final word on your loan is nerve-wracking for
every home buyer even if your lender indicated your application
will probably be approved.
Just how long will it take? Processing times
vary, and can be affected by things beyond your lender’s
control waiting for verifications to be returned and the like.
Generally, though, you should expect the approval
process to take about 30 days. Your lender should be able to
give you a fairly accurate idea when you complete your application.
What you’ll get
Shortly after you complete your application—within
three business days—you should receive two separate pieces
of information from your lender (they may be given to you during
your application interview).
- A Good Faith Estimate of your closing costs.
This document lists the costs you can expect to pay at the
closing and settlement of your mortgage, if it is approved.
These costs include such items as the loan origination fee,
mortgage insurance, title insurance, escrow reserves and hazard
insurance.
- A Truth-in-Lending Disclosure statement.
This statement provides important information about the mortgage
you’ve applied for, including your estimated monthly
payment. It also shows the total cost of all finance charges,
stated as an Annual Percentage Rate (APR). The APR includes
all finance charges, origination fees and other charges in
addition to the interest on the mortgage, and converts all
of them to an annual interest rate. As a result, the APR is
usually higher than the interest rate alone.
How to make the waiting easier? The single most
important thing to remember while you’re waiting for your
loan to be approved is this:
Lenders want to approve loans.
After all, that’s what they’re in
business to do. That’s how they make their living.
And if you’ve provided complete and accurate
information, along with supporting documentation, on your application,
you’ve already helped assure that your application will
be processed promptly.
But even if you have been completely accurate,
you should be prepared for your lender to ask for additional
information about you or the home you’re buying. A request
for more information isn’t necessarily a "bad omen."
Just provide the information that’s been requested as quickly
and completely as you can.
In general, it’s a good idea to keep the
lines of communication open. If additional questions do arise,
it’s important for you to be available to provide the information
as quickly and completely as possible.
If you have travel plans, for example, you may
want to provide a telephone number where you can be reached,
or use your Realtor as a contact person.
If you have questions, you can call your loan
officer, or you may be given a person in the loan processing
department to contact about the status of your application.
But keep in mind that processing your loan will take several
weeks under the best circumstances and calling all the time
to ask about it won’t speed it up one bit.
