Getting a loan - Step 5: Loan Approval

Posted On: Monday, February 6, 2012 - 5:31am | Posted By: Diane Hourany
Topics: Buyers and Sellers | Tags: loan application, loan approval, loan documentation, loan submission, mortgage broker

Your offer on your dream home has been accepted and the loan application is in process. Now you're waiting for the final loan approval.

  • Loan approval, or underwriting, generally takes anywhere from 24 to 72 hours, and it can take slightly longer if mortgage insurance is required.  “Mortgage insurance underwriting” occurs when the borrower has less than 20 percent of the loan amount to put towards a down payment.  All parties are notified of the approval and any loan conditions that must be received before the loan can close.  You may then remove your financing contingency.

To avoid costly mortgage insurance, you will need at least 20% down.

Tomorrow: Step 6 - Documents are Drawn

Diane Hourany

What makes me different from a “traditional agent” –most agents do business as if they will never see or hear from you again.
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