If you need a mortgage to buy a home, you probably want to know how long it takes. While each person is different, on average, expect it to take between 15 and 45 days. The exact time depends on your circumstances and the lender’s workload.
What are the Factors?
Lenders go through a lot of information when you apply for a mortgage. It makes sense since they are lending you hundreds of thousands of pounds. They need to know your capabilities of paying the loan back as well as the value of the collateral should you default.
Lenders look at all of the following:
- Proof of your income including your wage slips and bank statements. If you work for yourself, they’ll also look at your self-assessment returns.
- Your credit score. Lenders use this number to decide whether or not to move forward with your application. A low credit score doesn’t mean an automatic denial, but it can make things a little trickier.
- Evaluating your current financial commitments. What do you already have to pay and how does it affect your ability to pay the mortgage?
The Factors that Don’t Pertain to You
In addition to your own personal factors, lenders have other factors they must consider, including:
- Working with the solicitor that represents your interest in the property.
- Working with the estate agent that is handling the purchase for you.
- Waiting for the valuation survey to ensure that there is enough collateral in the home to make the loan worth it.
How you Can Speed up the Mortgage Process
If you’re like most buyers, you are anxious to get through the mortgage process. You want to complete the transaction and hold the home’s keys in your hands. Fortunately, there are a few ways you can speed up the process:
- Be organized – You’ll need plenty of documents that prove your income, assets, and employment. Find out ahead of time what the lender may need and get it all together. Providing the lender with everything at once can help eliminate the back and forth that can slow things down.
- Work with a reputable lender – Of course, working with a reputable lender is the key. You need a lender that understands your circumstances and will work with you. A lender that is upfront about its available programs and whether or not you meet the requirements can help avoid unnecessary delays.
Do Mortgage Offers Expire?
It’s important to know that mortgage offers do expire. Typically, you have six months to complete the sale. If you don’t, you may have to provide proof of your qualifying factors all over again, in essence starting the process over.
The best way to ensure a smooth process is to get all of your information up front. If you work with a reputable mortgage advisor, you’ll know exactly what information lenders need. You can work fast to provide the documentation to the lender and the solicitor handling your purchase. When all parties work together, you can get a mortgage closed in as little as a few weeks’ time.