When groceries can be delivered to your doorstep in a matter of hours and you can order anything online at the click of an "easy" button, you may wonder why getting a home loan doesn't happen overnight. It’s important to know there are series of steps that require time and this ultimately protects you, as a buyer, and the interests of the home seller.
Churchill’s goal is to get you into your new home as quickly as possible. Our unique process spends extra time on your loan up-front (not waiting until the last minute like other lenders do). So, once you’ve found your home, the closing process is faster and you’re unlikely to experience unwanted surprises.
Breaking Down the Mortgage Process.
The real estate market is much more competitive than it was years ago, making a pre-qualification virtually meaningless and a pre-approval less powerful. Realtors tell us all the time how “automated mortgages” typically have last minute changes and delays because they aren’t as prepared up-front. Churchill Mortgage is different, and we invest time in the beginning to help you have a much smoother and stress-free loan process.
Fun Fact: The average amount of time it takes for a home loan to process is 45 to 60 days* depending on the lender and the loan type. We recommend having an honest conversation with your Home Loan Specialist to find out when you think you can close based on your situation. And by becoming a Certified Home Buyer you’re reducing your time it takes to close—up to 2 weeks!
Why Getting Pre-Approved Should Not Be Your First Step.
🕒: About 1-2 weeks with no property address needed, and the option to close 1-2 weeks earlier than with a traditional pre-approval.
- When becoming a Certified Home Buyer, you’ll submit your documents for review (just like with a pre-approval) but here’s the game changer: These documents are fully reviewed by an underwriter ahead of time, without a property address.
- It takes a little more time up-front, but you’ll be able to close on your new home sooner than with a traditional pre-approval.
- It’s a huge selling point if you’re in a multiple offer situation since home sellers are looking for buyers who are certified. This shows you are serious about your offer and you won’t back out later due to financing issues. No one wants to deal with a setback on closing day!
INDUSTRY STANDARD » Pre-Approval
🕒: A few hours up to a few days.
- Pre-approvals take more time than a pre-qualification. But, they also carry a little more weight since you’re submitting your documents for review.
- They involve pulling your credit report to determine a loan amount for which you qualify. You’ll then know the price range you’re working with when shopping for a home.
- Even after you’ve been pre-approved for a home loan, you’re not in the clear since a pre-approval is just saying your loan can be approved (not will be approved).
- You still need to fill out an application with the lender and wait.
- Often home buyers assume they are good to go with their loan at this point. You can still lose your dream home due to issues that arise before closing at this point!
BARE MINIMUM » Pre-Qualification
🕒: Anywhere from a few minutes up to 24 hours.
- A pre-qualification is when you answer questions about your credit history and income to your loan officer or online through an automated service.
- It’s fast but not very reliable and in today’s real estate market, it doesn’t matter much to sellers.
- You’ll also get a wide range of how much you can spend which is often confusing to first-time home buyers.
- It’s better to have a more detailed financial outline before you start looking for a home, so you don’t get in over your head and you know exactly the right price range to search.
Pro Tip: There a few required steps with every home loan after you start the process. The quicker you respond to your lender with answers, financial documents and other requests, the quicker your home loan process will move along. As always, we are here for you if you have any questions!
If you’d like more information about how to become a Churchill Certified Home Buyer or if you’d like to speak with one of our Home Loan Specialists, contact us today.