Navigating Your Journey to Home Ownership

Purchasing a home signifies one of the most significant milestones in your life. Simultaneously, it can also present itself as one of the most complex transactions you will ever engage in. At CrossCountry Mortgage, our primary goal is to streamline this process for you. One effective way we achieve this is by elucidating the overall home loan timeline, offering a clearer understanding of what to expect and when, to help you manage your everyday life amid the home-buying process. Although various factors like loan type, lender, and external influences may alter the timeline, this guide will offer a broad understanding of the loan process, including approximate durations for each step from inception to closure.

Pre-Approval & House Hunting: The Precursor to the Timeline

Before embarking on your official loan timeline, we strongly recommend seeking a comprehensive approval from your Mortgage Advisor, rather than a mere pre-qualification. At CrossCountry Mortgage, we provide upfront approvals, subjecting your loan to a "credit-only" underwriting. This process involves an underwriter assessing and approving your loan based on your credit, income, and asset documentation, prior to committing to a specific property. This upfront approval will convey to sellers that your offer is not only serious but backed by a reputable lender, thereby strengthening your buying power. Upon securing this approval, you can begin the exciting journey of house hunting. The duration of this step will largely depend on the volume of suitable homes in your desired area and the competition from other prospective buyers.

Making an Offer (Usually 1 Day)

Once you've found your dream home, your real estate agent will guide you in drawing up a purchase agreement. This multi-page document outlines the terms of sale, including the following:

• Property address and legal description
• Sales price
• Down payment amount
• Inspection timelines
• Closing date
• Any inclusions in the sale (like appliances)
• Closing agent details

Negotiating the Offer (Approximately 1-3 Days)

The response to your offer might take a few days, particularly if the seller has received multiple bids. The seller can accept, decline, or counter your offer with adjustments to the sale terms. You, in turn, can reciprocate with a buyer's counteroffer. This negotiation process can loop until all parties reach consensus and endorse the contract.

Mortgage Application & Disclosures (Approximately 3 Days)

With the signed sales agreement in hand, your Mortgage Advisor will draft your official loan application and disclosures, which encompass a Loan Estimate. This crucial document outlines the estimated closing costs, prepaids, interest rate, and monthly payment for your loan. After reviewing and signing your application and documents, your Mortgage Advisor will forward your loan for approval (or for updated approval if the lender has previously approved the loan.)

Home Inspection & Final Negotiations (Approximately 3-5 Days)

The home inspection, once scheduled, will take a few hours. The scheduling depends on the availability of both the home inspector and, if occupied, the homeowner. Upon completion and review of the inspection results, you typically have the opportunity to negotiate repairs with the seller, a process that can take a few days. If you believe the home inspection results are flawed, there are measures you can take.

Appraisal (Approximately 1-2 Weeks)

The duration of the appraisal process can vary based on property type, location, and time of year. For instance, appraising a single-family owner-occupied dwelling in an urban area is often quicker than a three-unit rental home or a rural property. The discrepancy is due to the increased complexity and extra time required to assess rental market trends for rental and multi-unit homes. Rural appraisals are also complicated by larger property distances and less frequent turnover. Busier real estate periods may extend the appraisal timeframe due to a higher workload.

Final Approval & Closing Disclosure Issuance (Approximately 5 Days, Including a 3-Day Mandatory Review Period)

Following the appraisal and addressing any loan conditions, your file returns to underwriting for a final review. After receiving your final approval from underwriting, you'll be issued a Closing Disclosure (CD), summarizing your final loan terms, closing costs, and prepaids. The CD's issuance initiates a mandatory 3-day review period, giving you a chance to scrutinize everything before finalizing the paperwork. Sundays and Federal Holidays are excluded from this period, so it might span more than three calendar days.

Closing/Recording (Typically 2 Days)

After the review period, you'll schedule an appointment to sign your final loan documents. In most scenarios, the signing and funding do not occur on the same day. Typically, the signing occurs one day, and funding follows in the subsequent days. Once the loan funds, the documents are recorded at the county recorder's office, officially marking you as the homeowner.

Overall Loan Timeline: Approximately 30 Days

On average, the duration from accepting an offer to closing your loan falls within the 30-45 day range. Remember, this is a rough estimate; the process can be faster or slower depending on your specific circumstances. Ensure to communicate any concerns with your Mortgage Advisor throughout the process. We understand the logistics of moving and will do everything possible to ensure a timely loan closure.

Curious about your specific mortgage timeline?

Connect with one of our licensed Mortgage Advisors today!