Mortgage loan underwriting can lengthen a first-time homebuyer's closing period.
The Closing Period
The time between when your home purchase offer is accepted by your seller and when you sign your loan paperwork is known as the closing period. All executed real estate purchase agreements contain closing dates mutually agreed to by their sellers and their buyers. In some cases, home sellers expect buyers to close as soon as possible, but buyers should close only when they're ready. Generally, typical first-time homebuyers need about 30 to 45 days to close on their homes.
First-time homebuyers should try to get pre-approved for their mortgage loans before shopping for a home. When you're pre-approved for a mortgage loan it means your loan officer has examined your credit and believes you'll
qualify for a mortgage loan up to a certain amount. A mortgage pre-approval could also shorten the time needed to close on a home purchase. Basically, by obtaining a mortgage pre-approval you'll have already provided some of the documentation needed to underwrite your mortgage.
Mortgage Underwriting Process
Preparing For Closing
Unless you're a first-time homebuyer with a "no down payment, no closing costs" mortgage you'll be bringing certified funds to your closing. Getting together all your money for closing costs, such as your mortgage loan's pre-paid interest, can take time. When working with first-time homebuyers, most experienced real estate agents recommend a 30-day closing period, at minimum. However, well-prepared and financially able first-time homebuyers can obtain speedy mortgage approvals and close as soon as their sellers are able.
Scheduling Mortgage Closing