Physical Address

304 North Cardinal St.
Dorchester Center, MA 02124

How Long Does Final Mortgage Approval Take

Acquiring a mortgage loan is a long process that consists of many stages, and each stage is equally important. If you want everything to go as smoothly as possible, it is helpful to know what is required in order to reach the final agreement and what the process looks like, so it is a good thing to know is – “How long does final mortgage approval take?”.

Supposing that all paperwork has been completed and is waiting to be signed, that costs for closing have been taken care of and that all needed parties are present at the meeting, it shouldn’t take more than an hour to shake hands with the lender.

A person applying a "sold" sticker

Mortgage Approval Is a Short Process When All Requirements Have Been Met

At modern mortgage companies like City Creek, Angel Oak, or Charles Schwab and Rocket Mortgage partnership, usually no more than an hour is needed to obtain approval for acquiring your mortgage deed. The process looks like this:

  • The final closing paperwork usually consists of around eighty to a hundred pages, and most lenders nowadays send a digitized version of these documents so that a client can perform one final check before closing. This is where brokers make their money, as it is extremely helpful to have a professional broker do the final examination.
  • When you arrive at a company, the lender will first do their own final review, and if everything is legitimate, the lender will first issue a “Clear to Close” (CTC) statement meaning that everything is valid and that the client is ready to receive the loan.
  • The final document that you have to sign is called “Closing Disclosure” (CD). Most modern lenders like Bank of America will send the digitalized version of this document to their clients two or three days before the closing. This document is the final overview of what a loan includes (amount of money, fees, APR and interest rates, and other important information). Once you have signed this document, the mortgage loan will be finalized, and you can shake hands with the lender.

If you have communicated with the agent who was appointed by the company and had the help of professional broker services, the closing of a mortgage loan will be an easy process. However, if you are not exactly sure what you are signing, don’t hesitate to ask questions and prolong the process as much as you deem necessary. After all, a lot of money is at stake, and you will certainly not want to spend the next ten or twenty years paying some fees that you weren’t aware of during the final meeting.

Some Mistakes Can Delay the Mortgage Approval a Lot

Although not all companies do business in the same way, there are certain rules that the majority follow, and if these rules are not followed by the client, the mortgage approval can be delayed a lot. Here is what to watch for when finalizing the loan.

Signature RulesMost companies demand signatures with the standard blue pen and a full name. If you sign with a red or black pen or write your nickname and not your legal name (Joe instead of Joseph, for example,) all the paperwork will have to be written again, and you will have to check everything again.
Missing PartiesThis depends on the law in your state. However, in states like Texas, if you are a married person and buying real estate that will be your primary residence, your spouse also has to be present during closing. The reason is that spouses automatically receive the inheritance right, and because of that, it is in their interest to be present (they also sign certain documents) even though they didn’t partake in acquiring the actual loan.
Remote ClosingsThere are certain situations where the client cannot attend the closing in person, usually due to health reasons. It is possible for a third party to finalize the deal. However, you will need a special document called “Power of Attorney” (POA,) which represents your approval and confirmation that a person will sign the paperwork instead of you. Some companies will even require you to be available on a phone or video chat in order to give the final yes to signing. 
Personal DocumentsEven though you have met the agent and probably had many conversations prior to signing, the company’s agent is obliged to ask for a personal document in order to confirm the client’s identity. It doesn’t matter whether it is your identification card, passport, or driver’s license – it is only important that it contains your personal information and a picture. 
Closing CostsEach and every company will have fees for closing the loan agreement. If you don’t pay this fee on time, the closing will, of course, be delayed. Most clients make the payment either via their mobile banking applications (the funds are directly sent to the company’s account) or go to the bank to make the payment and then bring proof. Just remember that if you have forgotten to make this payment, the closing will be delayed until you have done so in one of the two methods above. Mortgage companies don’t accept cash payments in person.
A woman signing documents

Good Preparation and the Right Knowledge Are Keys to Finalizing Loans

Before you send any loan applications, it is best to first learn what a mortgage service entails from the beginning to the very end. There is no denying that this can be a daunting task for a person who has no prior economic knowledge, but mortgage loans are no laughing matter, and you have to be sure that the right documentation is being signed. A slight misunderstanding can sometimes have terrible consequences.