August 14, 2017
Orion’s experienced brokers are good at setting expectations and tell their clients that when they're starting the process of obtaining a mortgage, home shoppers may need to plan for more time than they realize! Yes, Orion can close a loan quickly, but our brokers know that complications can arise.
Today’s mortgage process is very involved, particularly regarding the documentation required, third-party verifications, and the independent appraisal process. Nations does its best to make the process smooth, but these moving parts can cause a delay in processing if an issue arises. The entire process encompasses getting preapproved, a home appraisal, and getting the actual loan. Typically, the process takes about 30 days, on average, but can take much longer based on the transaction.
In busier times of the year, however, consumers should expect a longer wait. For example, a duration of 45 to 60 days may be more of the norm. We tell our borrowers they may be best advised making sure we work together for an early start to the mortgage process from the moment they even start thinking they may want to purchase a property. Many sellers require buyers obtain preapproval for a mortgage before they’ll even accept an offer.
For a preapproval, brokers will check the consumer’s credit rating, debt-to-income ratio, and other financial information. That alone may take a week or even longer, depending on the borrower’s circumstances. But buyers shouldn’t confuse a preapproval for having an actual mortgage loan. Borrowers still must apply for the actual loan and get through the appraisal process. Also, in the underwriting process, lenders will review all the consumers financial information and ensure the home buyer has not made any false or misleading claims on their application.
Orion’s AEs report that the most common reason for a mortgage-related delay is the borrower not turning in documents in a timely manner. The best advice a broker can give someone buying a home is to prepare to respond very quickly for all documentation requests!