How Long Does it Take to Get a Home Loan?
Here is what to know about how long it takes to get a home loan.
A Multi-Part Process
Your FHA loan has multiple parts. There’s the pre-approval stage, the appraisal process, and getting approved for the loan.
Realtor.com has some good advice for those new to the house-hunting process, including the recognition that home loans have a busy season, and during that season, you may expect longer waiting times. It pays not to be in a hurry when buying a home.
Realtor.com notes, “If the lender uncovers any financial issues in your record (e.g., a low credit score, previous foreclosure, or overwhelming debt), getting a mortgage can become a slower and more complicated process.” It’s smart to work on your financials as early as possible.
Some Outstanding Debt May Complicate Your Loan
Credit.com notes, “Outstanding debt with the Internal Revenue Service can elongate the process, so be up-front with your lender about these potential problems.” You’ll have a much better experience (and a potentially shorter one) if you discuss these issues as early as possible.
Be Ready to Apply
Having your documentation lined up before applying for a loan or getting pre-approved for one is a good idea. Be sure to have the following documents ready before you start looking for a lender:
- Unexpired driver’s license
- Social Security card
- Most recent 60 days’ bank statements
- Most recent two pay stubs
- Most recent two years of tax documentation
- Bank account information
- Current estimated FICO scores
If you are pre-approved for a loan, you may be given a letter explaining the terms of that pre-approval. Having one is useful when house hunting. Such letters are not open-ended and may expire within 60 to 90 days of issuance. Know how long your pre-approval period lasts and when it expires.
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