(Closed) How hard is it to get a mortgage & how long will it take?

posted 4 years ago in Home
Post # 3
Member
2696 posts
Sugar bee
  • Wedding: September 2012

I think it usually takes 3-4 weeks for a lender to put together a mortgage.  But sometimes you can find one who will do it very quickly (we had ours done in 2 weeks).

I would definitely shop around for mortgages (it’s pretty standard to).  Check with your broker, a bank, a credit union, and/or a mortgage company.  You should be able to get accurate quotes based on your credit history, the loan amount, your current financial situation, etc.  A pre-approval/quote should only take a couple of days.  You’ll have a much better understanding of what kind of rates you’ll get and if you’ll be able to afford it.

I can’t really tell you how hard it is to get one.  It’s going to depend on the loan amount, your credit history, the home’s appraisal, and the amount of your downpayment.

Good luck!

 

 

 

Post # 4
Member
10368 posts
Sugar Beekeeper
  • Wedding: September 2010

It doesn’t cost anything (usually, sometimes there is a credit report fee) to get pre-approved through a bank instead of a broker. Just time. If it’s been less than 30 days since the broker pulled your credit and you would like to shop around, i’d suggest doing so immediately. Definitely look outside of big banks – credit unions and smaller banks tend to be cheaper, and can be more flexible sometimes (not to mention more responsive). We used Everbank, and I can’t recommend them enough.

I’m not sure how difficult it is to get a home loan with not-so-great credit, as we had excellent credit and 20% down, but it was a snap for us. Didn’t get turned down by anyone. Here’s hoping you have the same luck!

Post # 5
Member
1096 posts
Bumble bee
  • Wedding: June 2011

If you were pre-approved and they actually ran your credit (didn’t just say you were pre-approved based on your income vs. debt ratio) it should have locked in an interest rate for a certain period of time. 

Post # 6
Member
10509 posts
Sugar Beekeeper
  • Wedding: January 2011

@sit1010:  +1

Unless it was a variable rate.

Post # 7
Member
8469 posts
Bumble Beekeeper
  • Wedding: April 2013

My husband and I purchased our first home about a year ago and we were pre-approved (through a bank) and it took us about 4 weeks to close (our offer was accepted on May 29th and we closed on June 26th).  We had good, but not great credit, it was our first home, and we had 20% down.  Our real estate agent and our lender were both very helpful with how to improve our credit score.

 

Post # 8
Member
672 posts
Busy bee
  • Wedding: November 2012

To get pre approved it took us no time at all, to get our actual approval took about 3 days. When we finally put an offer in and were getting ready for closing, that took about 3 plus weeks. We have pretty good credit and are putting more than 20% down and our house was appraised for more than the purchase price so we really had no issues to deal with.

Post # 9
Member
1262 posts
Bumble bee
  • Wedding: October 2014

It didn’t take us long at all (A couple days? Maybe?) But SO has excellent credit and we had already locked in our interest rate with the pre-approval as PP has mentioned. 

Post # 10
Member
3267 posts
Sugar bee

aso, you should really have determined what you can afford to pay before you bid on a place. And if ur credit isn’t great, then it may be difficult. though before you bid on anything else you should definitely figure out what you can afford to pay per month, and make sure you will not be house poor.

Post # 11
Member
10368 posts
Sugar Beekeeper
  • Wedding: September 2010

@sit1010:  We didn’t lock our rate in with a pre-approval. Our rate wasn’t locked until we initiated the official mortgage application after offer approval. Otherwise, you risk going over the 30-60 day lock period and having to pay to extend.

Post # 12
Member
10509 posts
Sugar Beekeeper
  • Wedding: January 2011

@crayfish:  You have to teach me about this.  Here, if the locked-in rate for the preapproval expires you can just go out and get a new one.  No charge!

We even got preapproved way earlier just because we wanted to check if we could actually get what we wanted, some online calculators really underestimated what we could be preapproved for!

Post # 13
Member
922 posts
Busy bee
  • Wedding: September 2013

We got pre-approved first, but our rate didn’t lock until we went under contract.  We were pre-approved for about double what we really could afford.  Really, you’d think banks would learn their lessons by now and not give people what they can’t afford.  We asked for closing costs from the seller, which they agreed.  But we still had to have a down payment, pay the HOA fees, inspection, etc.  It was a lot but we were prepared with our savings (our banker gave us a very close estimate the day before so we could have it wired).

Post # 14
Member
10368 posts
Sugar Beekeeper
  • Wedding: September 2010

@AB Bride:  It can cost thousands and thousands of dollars to lock a rate in beyond the initial period here! It’s suck a racket. You really have a lot of variables to look at when choosing a mortgage lender. Some have awesome rates, but only 15 day locks, some crappier rates, but much longer 60 day locks. We lucked out and qualified at a really low rate and 45 day lock (usually takes minimum 30 days to close here from start to finish once the loan application has been initiated after an accepted offer!). The banks really take advantage of the fear of mortgage rate fluctuations. Now that rates are starting to go up a bit, I suspect that’ll only get worse.

Post # 15
Member
10509 posts
Sugar Beekeeper
  • Wedding: January 2011

@crayfish:  When you lock in with a preapproval it’s usually not the best rate.  For example, we’re 0.05% higher than if had actually made an offer on a house.  We have it for 120 days though, and that’s fairly standard.  If rates do go up and our preapproval expires we could only lock in at a higher rate, I don’t think it’s possible to pay a fee to get an extension at a lower rate.

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