For banks and other institutional lenders, 10 business days is pretty much the standard in terms of what you can expect to close a mortgage once its been approved. So the whole process from application to funding with an institutional lender is more likely going to be at least 3 weeks.
With a quick close mortgage from a private lending source, from the time of application to funding, the process can potentially be completed in two to five business days in total.
Outside of some sort of payday loan or cash advance from an established credit facility, a quick close with a private mortgage is arguably the fastest form of financing available anywhere.
In order to have a fast close mortgage option to consider, you’re going to have everything in order for a mortgage broker and private mortgage lender to review quickly so that a decision to fund can happen just as fast, followed by an immediate close coordinated by the lender’s lawyer, working in coordination with your lawyer.
In addition to making sure you have all the property related information and existing mortgage information at hand for a private lender to review, a fast mortgage is also more likely if you are not looking for a high loan to value on the property being offered as security.
For instance, if the loan to value on the property being offered after factoring the funds required is 60% or less, then its more likely that private lenders that provide a quick close mortgage service will be able to assess and decide on your application request quickly.
And when I say quickly, I’ve seen cases where within a few hours of the applicant getting in touch with me a formal commitment was already secured allowing for the deal to proceed to closing.
The key in locating and securing a quick close mortgage is to work through a mortgage broker with private lenders that can move fast and have a commercial lawyer who will move even faster.
Now speed does come with a cost which is going to be built into the interest rate and lender fees, but compared to what types of costs may be incurred or opportunity foregone if a deal is not completed in time, the net costs of a private mortgage may seem small in comparison.
If you are in need of a quick close mortgage and have equity in real estate to leverage, I suggest that you give me a call right away so I can quickly assess your requirements and provide you with relevant private mortgage options for your immediate consideration.