New Home Buying Process
01 Jan

The new mortgage process: 45-day standard vs the 21 day close

What Is The Difference In Time To Close?

The standard mortgage process from the day of your offer being accepted to closing on your new home takes an average of 45 days.  Historically this has been the going average from offer to closing, but over the past 12-24 months there has been a shift into the time that is desired to close on a home where 6+ weeks doesn’t cut it like it used to.  While to some the 45 day close might not be an issue, but in today’s competitive real estate market, time is not on your side and a delay of just a couple days can sabotage your pending deal.  With inventory of homes for sale at an all-time low, you need to ensure you can close quickly as sellers know this and want to move on from the sale of their home in a quick manner.

What Are The Advantages Of The 21 Day Close?

  • Know exactly what you qualify for before you spend any money out of pocket.
    1. Let’s face it, mistakes are made. Many loan officers are amazing at their job, but many do not pay attention to details. This is why you must have the pre-approval signed off by an underwriter. At the end of the day they are the only person who can approve you and here at Mortgage Scenarios we will guide your file through the underwriter to make sure they are 100% knowledgeable of your circumstance so there aren’t any last minute home denials and we can get your home closed FAST.
    2. Knowing the exact monthly payment you can afford will eliminate wasted time and effort when browsing listings to find the homes you would like to see. Staying within your budget is the smartest way to approach your searches. When you know exactly how much you can afford we will give you an amount that will need to include mortgage principal and interest, home owner’s insurance, and any HOA fees associated with the property.  The amount we give you will be an “all-in” amount.
  • Make your offer almost as strong as a full cash buyer.
    1. 21 days is a very standard time frame for a cash buyer. From the home inspection, appraisal completion, and the title work involved does take about 21 days in total. Since you can have a full loan commitment signed off by a certified underwriter, you can close just as fast as the cash buyer.
    2. The loan commitment will already have the following verified and signed off by a certified underwriter: Assets for down payment, employment, and all credit report documentation.  Having this information already verified any potential sellers will know they are working with a borrower who is serious and can afford the home upon putting in an offer.
    3. The purchase transaction is complete besides the following items: Title commitment and appraisal. Since you will want to have the home inspected before the appraisal this process generally takes 21 days or more, just like someone offering to pay in cash.
  • Be on time with commitments
    1. You and your licensed loan officer will know exactly where you file is at all times. You will have access to your loan status 24 hours a day from the initial application all the way through closing. To hit the 21 day deadline, you are in the driver seat. Once your loan is underwritten you will be required to send in any missing documentation within 48 hours. The faster you can provide the documentation the better.  Your loan officer at Mortgage Scenarios will give you a comprehensive list of documents and additional information needed so having access to this information is vital for quick turn around times leading to a streamlined closing process.
    2. Even if the seller does not want to close in 21 days, it will help the process to be early for commitments. How many times have you heard the horror stories of families not closing on time? Take all the stress of the new home buying process experience. When you can tell your realtor you’re clear to close 14 days before the closing you will look like a HERO.

At the end of the day this experience can be simple!  When you work with Mortgage Scenarios we will do everything in our power to ensure we have a clean and stress free close.  We try our best to prove others wrong who have had nightmares working with other lenders.  Buying a home should be a happy time for you and your family and with our expertise we can make this happen with reasonable expectations that will be met.  Please reach out for further information and to get your pre-approval started today.

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