Unless it is a cash transaction, you’ll need to secure a mortgage to purchase your property of interest. Typically, contracts in our DMV area require an official loan application to be made within seven days of ratifying a contract on a property. Most sellers require a pre-approval letter up front to review with your offer to purchaser.
A pre-approval letter is from a lender who has reviewed a preliminary loan application and given preliminary approval that the purchaser can purchase the home, contingent on their underwriters verifying the information in the loan application. After ratifying on a contract, you submit an official loan application with a lender for a particular property to purchase, and the company works to secure a loan on that property for that particular purchaser. The first step your lender will do is to review your application and check the facts to verify that everything on your application is correct. Next, they’ll pull your credit and then they’ll do a property appraisal on the property that we have under contract. Once the property appraises, we move forward and the lender decides whether or not to approve your loan. The financing process typically takes the whole period from contract to closing and you typically get the loan approval within about a week before settlement date. Your lender may ask for more documentation during the closing process, so we recommend being ready to write a letter of explanation or to obtain more documents that your lender may need. Some lenders can work to secure a loan in as little as two weeks or even less. Most lenders take about 21 days to finalize a loan. Some lenders, particularly big banks and credit unions can take up to 30 or 45 days to finalize a loan. Depending on the pace of the market you’re planning to purchase in, you may want to find recommendations for a local lender or a mortgage broker, because they’re often faster.
Ask Team Thiel today for our list of recommended lenders!
If you’re considering buying a home, contact Team Thiel today!