If we start with the best rates available through a bank or institutional lender, they will promote applying for a rate hold of 120 days so that you can basically get a pre approval in place so that when you’re ready to complete your mortgage transaction, that the process can go as fast as possible and you have some rate protection as well.
While this isn’t really making the mortgage closing quick, its potentially quicker if you didn’t get the process started before you needed mortgage financing.
Banks and institutional lenders will also have fast mortgage or quick mortgage closing options whereby you’re basically offered their very best rate if you complete your mortgage funding within a 30 day period. This is more of an incentive for you to get the best possible rate by staying focused on one lender than it is on making the process go faster.
If time is the key issue meaning that you need to be able to get a mortgage in place as fast as possible, then the only real quick mortgage close option is going to be through a private mortgage lender.
In the private mortgage lending world, quick is two to five business days. That’s about as fast as it gets unless you’re talking about a payday loan or a small consumer loan that can basically be issued in one day, but for very small amounts.
The standard close time for a bank or institutional lender AFTER a loan application has been submitted, processed, and approved is ten business days.
With private mortgage lending, a quick mortgage close from the time of application to the time of funding can be accomplished in two to five business days.
But that’s not going to happen with all private lenders.
In most situations, private lenders, on average, don’t work that much faster than a bank because both have to go through a lawyer to complete the mortgage registration process.
For a true quick mortgage closing, you need to be working through a private mortgage broker, who works with both a private lender that is prepared to react quickly to funding requests, and with a lawyer that is ready and willing to complete the closing quickly.
If you’d like to discuss your quick mortgage closing options, I suggest that you give me a call and we’ll go over the different approaches you can take based on the time you have and your other financing requirements.