How Long Does It Take To Secure A Home Loan?

In today's rapidly shrinking credit market, if you are looking to receive a home loan, you are probably a little concerned. After all, you have found a property that you want, and you want to be able to purchase it before it goes off the market! The good news is that receiving your home loan can be done very quickly, often in just a few minutes if you have all the proper documentation and have been pre-approved. But there are many factors that can delay or alter how long it takes to secure a home loan.

The good news is that you should be able to meet with your lender, complete the application for your home loan, have your credit checked, and get your underwriter approval done within minutes at many lenders. After this, the final steps are an appraisal, getting a purchase contract, and a title report. Under ideal circumstances, this can all then be done in as little as three days, assuming you come to the underwriter with all the necessary documents, though the time often is extended to several days.

Don't be alarmed, though, if the whole process takes far longer---many underwriters will tell you just a few days when you ask them how long does it take to secure a home loan through them, when ultimately the process stretches to thirty days or more. In fact, for a purchase transaction, the standard time line is often a month. Here are some things that can slow up the process:

1. Inspection problems: If the home inspector finds or encounters problems with the property, often the loan application cannot go through until these issues have been addressed. If repairs need to be made before the loan can be closed, that can extend how long it takes to secure a home loan. Sometimes, even a delay in getting the home inspected can hold things up.

2. Problems with the appraisal: Sometimes the lender will have issues with the initial home appraisal and will have the original appraisal put under review. If that happens, the appraiser will need to make some adjustments to the appraisal to respond to the objections from the lender. This, in turn, can also extend the time it takes to secure a home loan.

3. Problems with the title: At times, the title company may respond slowly, or even change. In addition, sometimes there are problems with the title that aren't immediately clear, and may require a lengthy process to sort out, thus extending how long it takes to secure the home loan.

4. Other problems: Sometimes the seller backs out of the agreement, which can delay or even prevent the loan from going through. And on occasion purchase agreements will have clauses saying that the loan cannot close before a certain date, which may then slow the process even more.

The long and short of it is, the answer to the question "How long does it take to secure a home loan" is that it can take a very short period of time if you are lucky, but don't be too concerned if the process takes a month or more.