Once your offer on your dream home is accepted, it doesn’t mean you can just grab the keys and move in. If you need a mortgage, securing this home loan takes time. The good news is that it’s faster now than ever.
According to a recent three-year study by LendingTree, the length of time it takes to get a mortgage (aka closing) is an average of 40 days in 2019. That’s down from 51 days in 2018 and 74 days in 2017.
And here’s some good news for homeowners who’ve already moved in: The time is taking to refinance a mortgage is also dwindling. Refinancing takes an average of 38 days in 2019, down from 43 in 2018 and 55 in 2017.
Homebuyers should be thrilled to hear that the mortgage process is speeding up – who doesn’t want to move into their new home as quickly as possible? Earlier closing times can also save home buyers money, especially if they are paying high rent or having to find temporary housing while waiting to move into the new home.
Why it Takes Less Time to Get a Mortgage Today
The digitization of the mortgage process is the main reason for the shorter closing times, according to the LendingTree report. The mortgage industry has become increasingly digital since 2008 financial crisis, when companies operating in the paper-centric system of the past lost or misrecorded some details form their clients, causing problems and legal issues during the foreclosures that often followed.
Since then, some lenders have created new mobile-friendly products to speed up the mortgage approval process. For example, Quicken Loans launched the app Rocket Mortgage in 2015 to help borrowers close earlier than the industry standard, reportedly sometimes as quickly as eight days.
How to Get a Mortgage Fast
So what can consumers do to reduce as much as possible the length of time it takes to get a mortgage? To speed up the closing process, we urge home buyers to choose a lender with a more digital, less paper-driven process. Before signing on with any lender, ask if the company can digitally link to a borrower’s bank, the IRS, or other institution to get information to process the mortgage since this is the key to a speedy approval.
Online lenders make it easier for borrowers to compare mortgages, and they often offer better rates and faster approvals, but they come with less customer service, so they may not work well for complex home loans. Mortgage industry experts suggest that borrowers look over the application process, check out online reviews od the company, and make sure it is registered with the Better Business Bureau before they sign up.
