Residential Mortgage Process
“Here Are Some General Guidelines For Getting a Residential Mortgage Commitment in Place and Funded”
I’ve been writing quite a bit lately about quick close mortgages or fast close mortgages to deal with situations where time is short and you’re running the risk of losing out on a deal or incurring some additional costs for not having mortgage financing arranged in time.
To avoid the need for a fast close mortgage in the first place, you need to have a basic understanding of the residential mortgage financing process and the related timing.
Remember that I’m only providing basic guidelines as requirements can vary considerably from one mortgage lender to another and even among offices of the same mortgage lender.
For the application process, especially if you’re going to be doing any amount of comparative rate and term shopping, you should be allowing 2 weeks to have a commitment in hand. This will allow time for the application to be processed, an appraisal to be completed, and commitment papers to be drawn up and reviewed.
Once the terms and conditions are agreed to, most mortgage companies will have a closing schedule so that they can manage their overall work flow. A typical closing schedule will be 10 business days after the commitment is in place. Mortgages can be closed much sooner, but its hard to depend on that from one mortgage company to the next. Larger organizations are typically going to be slower as they have more moving parts and people to manage the open files as well as more open files in general.
So if you’re in need of a residential mortgage for real estate purchase, mortgage refinancing, construction, or debt consolidation, make sure you’re working backwards from the date funds are required and adding 4 weeks to the process so you’re going to be starting with enough time to get things done without getting into a mad scramble, or worse yet, falling into the quick close mortgage category that I’ve been talking about in recent issues.
If you need assistance with a residential mortgage for any purpose, just give me a call and I’ll go through your situation and options with you.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel