If you’re looking to buy a home, it is likely you will need to arrange a mortgage. The mortgage is expected to be the most critical aspect of buying a home, and the most significant financial commitment you will make in your life.
Given the importance of the mortgage, there needs to be time allocated to ensure that the lender is happy with the arrangement. Of course, when you are waiting on approval, time moves slowly, and you’ll be desperate for information.
Get your mortgage approved in timely fashion
Therefore, you’ll likely be keen to know how long does it take for a mortgage to be approved?
Don’t forget the length of time between deciding to buy a home and applying for a mortgage can take a lot of time. If you aren’t in the best financial position to apply for a mortgage right now, it is best to wait and improve your finances.
It is possible to improve your credit score and save money to add to a deposit. Therefore, you may find that taking six months, a year or longer to strengthen your application makes sense.
There is also the fact that you’ll want to find a home that meets your needs. The amount of money you need to buy the home directly impacts the mortgage you can obtain, so this is part of the process too. If you are fortunate, you may find a suitable property in a short timeframe, but you may be looking for a while.
Approval in principle
Once you have reached the stage where you meet with mortgage lenders, things start to become more evident. You should have an informal chat that gives you insight into what your options are, and what your next step should be.
It makes sense to apply for a mortgage in principle. You’ll need to provide documents that support your claim, and you’ll generally find you receive an answer in one to two weeks.
If you receive a refusal at this stage, you need to take some time to improve your finances and strengthen your application. It may be that an unseen detail has emerged in your application, or the lender has concerns about your ability to meet the mortgage requirements.
If your application is denied, you need to spend at least six months, if not longer, strengthening your application.
Approval in full
Once you have a mortgage approved in principle, and you agree to buy a home, you move to the full mortgage approval process. With this stage, you receive a full written contract that details the amount you need to draw for the mortgage, how much your monthly repayments are, and what the terms of the loan are.
This process usually takes around two weeks.
If things move smoothly, you could go from mortgage application to full mortgage approval in three to four weeks. Of course, if problems arise, the process takes longer.
If you need guidance in obtaining a mortgage, rely on Mortgage Simplicity, and we’ll be happy to help.