How Long Does the Loan Process Take?
If you are in the market to buy a home you should be aware that the length of time between when you apply for a mortgage loan and when you actually receive the funds can vary from a couple of weeks to a couple of months or more. Most real estate sales contracts for Madison Wisconsin home sales are written with a closing date of about thirty days from the contract date. Normally the home loan can be completed within thirty days; however, in certain situations (as when the documentation attached to the loan application is incomplete or inconsistent), there may be delays. Since generally time is of the essence in real estate deals, you’ll need to do your part to help your loan application go through smoothly.
Where to Start
The starting point for any prospective home buyer is your own bank account. How much money do you have available and ready to use towards a down payment today? Remember to keep aside a prudent reserve of cash in case of emergency such as illness or unemployment. If your parents or other sources have offered to contribute funds to your home purchase, now is the time to talk openly with them about how much they are prepared to give, and within what kind of a time frame.
When to Apply for a Loan
First time buyers may be surprised to hear that they should talk to a loan officer before they start looking at houses. Prequalification for a loan ensures that you have all the necessary documents, such as verification of employment, income tax records, credit history and the like, in order. If there are any problems, it will be much easier to get them straightened out at this point than when you are in a bidding war for the house of your dreams, especially in the case of Madison foreclosures, which tend to be purchased quickly. Preapproval is the next step and means that you know exactly how much money you have available and you can act quickly when you’re ready to make an offer.
When You Find a Home
When you find a home that you would like to buy, ask your realtor to draft a purchase offer. It is a good idea for any Madison home sales contract to include one or more contingency clauses. This means that your offer is subject to your receiving financing, or to a clean inspection, for example. A mortgage preapproval, while highly advisable, does not guarantee that you will actually receive the loan. If the information you gave your lender when prequalifying is accurate and complete, it is much more likely that your loan will go through fast and successfully. Be sure to be available to immediately answer any calls or emails from the key people in your life at this point – the loan officer, appraiser and so on. This will help to speed up the loan procedure as well.