How the Mortgage Process works now

October 27, 2009
Matt Isleib

 

Contrary to what you may have been accustomed to before and what you knew was the process before is no longer the case today. If you have not applied for a mortgage in the past 3-6 months things have changed.

How things work now are more of a staggered process. Take for example a refinance. After you have submitted your information and income etc. to your bank or lender and completed all the necessary paperwork you have a three day wait time to go over all the initial disclosures. During that three day time no other work can be done also no fees except for a credit report can be collected if your bank or lender charge for that.

After that three day period your bank or lender can now order your appraisal. Once the appraisal is back you have three days to review your appraisal. Assuming the rest of your loan is already all set once the three day period is up to review the appraisal you can schedule a closing.

If we are talking about a real estate purchase the same time frames and waiting periods hold true. So basically things these days are designed so that you fully understand the process. It also means that things these days are taking a bit longer than they used to. At my company Eversley Capital Mortgage LLC in Norwalk, CT depending on the loan and the investor we use time frames are still at about a three week turn time from start to finish. For some types of loans that time frame is closer to four weeks but keep in mind there is a total of six business days right from the start where nothing is basically getting done so all in all three to four weeks in my opinion is better than most.