The California real estate market is growing fast, with new home buyers looking for a great deal in their journey to home ownership. Applying for a mortgage is a huge life decision because not only are you making a commitment to a property, but you're also making a financial commitment that will last for years. So, it's no wonder that one of the most common questions we get at Mortgage Works about buying a house in 2022 is, "How long does it take to close on a home?"
The length of closing varies depending on individual circumstances and the current market. However, a few factors can affect the timeline of closing on a new home.
While every situation is different in the real estate market, most closings happen within 30-45 days after an offer has been accepted. Here are some factors that can affect the timeline of your mortgage application and closing process.
Let's take a closer look at each of these factors and how they affect the timeline of your mortgage process.
The type of mortgage you're applying for greatly impacts how long it takes to close on your home. For example, the process may be quicker if you're applying for an adjustable-rate mortgage (ARM). But, if you're applying for a more complex mortgage product like a jumbo loan or reverse mortgage, the process may take longer because they are longer processes.
Another factor affecting the home buying timeline is the lender you're working with. Some lenders are simply better equipped to handle mortgages than others. They may have more experience processing loans, or they may have more efficient systems in place.
The current housing market can also play a role in how long it takes to close on your home. For example, high demand for homes in your area could mean more competition for properties and longer wait times to close on your loan. On the other hand, if the market is slower, you may be able to move through the process more quickly.
Finally, your financial situation also impacts how long it takes to close on your home. If you have good credit and a steady income, you'll likely be able to move through the process fairly quickly. However, if you have bad credit or are self-employed, getting approved for a loan and closing on your home may take longer. Hence, the need to raise your credit score before applying for a mortgage loan.
Another big factor is the current state of the housing market. If you're trying to buy a home during a seller's market, chances are it will take longer to close on the property. That's because there are more buyers than homes available, so sellers can be pickier about who they accept an offer from. On the other hand, if you're trying to buy during a buyer's market, you may be able to close on your home more quickly because there are more homes available than there are buyers.
While there's no guarantee of a quick closing when you want to purchase a new home, there are some steps you can take to help speed up the process.
First, make sure all your financial documents are in order before applying for a mortgage. This includes payment records, income verifications, tax returns, bank statements, payment verification, credit reports, and any other necessary documents. You avoid potential delays when you have these documents ready.
Communicate With Your Lender
Communicate clearly and promptly with your lender. Respond to requests for information quickly and provide any necessary documents as soon as possible. This helps keep the process moving smoothly.
Working with a reputable lender with experience handling mortgages efficiently is a good idea. A reputable lender like MortgageWorks will advise you on mortgage rates, closing costs, and other rates so you can weigh your options. Do some research and ask for referrals before choosing a lender in California.
Reminder: While the timeline for closing on a home can vary, keeping these factors in mind and taking steps to streamline the process help make it go as smoothly and quickly as possible. Also, remember that after finding a property and reaching a purchase agreement, appraisal, title search, closing costs, and final underwriting review also affect the timeline.
Many factors go into getting approved for a loan and closing on your home, so make sure you do your research before jumping into anything. It's important to be patient and organized throughout the process to ensure a smooth closing experience.
The best way to figure out an estimated timeline for your particular situation is to talk to one of our experienced loan officers. They'll be able to give you a better idea of what to expect based on the type of loan you're getting and your financial situation. So don't hesitate to reach out if you have any questions, as we are here to guide you every step of the way.
MortgageWorks offers financing for new home purchases, refinance, home equity, investment property, construction, and a wide variety of loan program options to fit your every need.
Servicing California and the entire Coachella Valley, including Palm Springs, Cathedral City, Rancho Mirage, Indian Wells, Palm Desert, Desert Hot Springs, La Quinta, Indio, and Coachella. Call Art today @ (760) 883-5700
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 337037
www.nmlsconsumeraccess.org
1111 E. Tahquitz Canyon Way, Suite 121
Palm Springs, CA 92262
Phone: 760-883-5700
art@mwloan.com
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