The approval of a mortgage loan is a process that takes time since it is a contract that the client will assume for years, so the bank must make sure very well before approving that amount of money.
If you are close to getting married, you are thinking of acquiring a home of your own or moving to a new home, you may wonder how long it takes to approve a mortgage loan? In the next post we will explain the stages for the approval of a mortgage loan and how long it takes each step.
How long does it take to approve a mortgage loan?
Before applying for a mortgage loan you must take into account that the process between your application and the approval will take time since you must go through several stages before the bank considers that you are eligible to receive the loan.
It is a somewhat slow process compared to other types of loans, but take into account that it is a debt of several years so the bank cannot take risks.
The first thing you should do is simulate your mortgage credit, for which you can have the simulators offered by the bank in which you want to apply for your credit. And if you don’t know in which bank to ask for the best credit, you can use pages to buy between the different banks, in order to find the one that best suits your needs.
The next step is to request the pre-approval of the credit , in which you present the background of commercial approval of the home you have selected. This background is evaluated by the bank or financial entity.
After this you must apply for the mortgage loan to the bank , in which you must fill out a form with your identification, your work, commercial and financial background and in which you accept the terms and conditions established. It should be noted that before accepting, you must take the time to read the clauses.
You must process the request for the bank to carry out the credit study: more documents and more time. If you deliver the complete documents, in order and in force you will avoid wasting time and a possible refusal of approval.
An appraisal order will be issued
In which an expert will determine the commercial value of the property, in order to establish the maximum amount that the bank will grant as a loan. This appraisal implies the submission of certain documents, which take time to acquire.
You must wait for the approval of the Personal Health Declaration, the approval of the Commercial Appraisal of the home that was evaluated by the expert, the technical-legal resolution report and the approval of the title deeds of the property to be mortgaged.
Finally, the notary public makes the deed of the home and proceeds to the Registration in Conservator of Real Estate.
The question to all this is how long will it take to approve my mortgage loan? Well, taking into account everything that implies, you should know that the time between the application and the approval of the mortgage loan varies between 60 and 90 days. The distribution of this period is more or less the following:
- Between 24 and 48 hours it will take you from the time you apply for the loan until the bank responds with the pre-approval. Keep in mind that if you have already investigated all the requirements that the bank will ask for and you meet them, you are likely to be a credit subject and the pre-approval is positive. This is why to save you time, have all the initial documentation you will need on hand.
- 10 days after submitting your background, the bank should have the review and evaluation ready for the appraisal of the home.
- The legal part takes about 30 days, in which the commercial approval and review of the property documents will be made.
- The deed before the notary public takes approximately 15 days.
- 15 more days will take the registration of the property in the Conservator of Real Estate.
It takes time to approve a mortgage loan
It’s quite demanding, it requires you to show up at the bank on more than one occasion, to process documents, to keep all the requirements up to date, without any of them passing the due date and that be constant Therefore, if you are thinking of applying for a mortgage loan to acquire your home, you must arm yourself with patience and be persevering.