Residential Real Estate · Commercial Real Estate · FAQs – Real Estate
How long does it take to obtain a mortgage commitment?
Given the current lending climate, it typically takes thirty to forty-five (30-45) days for a buyer to obtain a mortgage commitment. Buyers and sellers alike should understand that this length of time is not necessarily a reflection of the buyers’ ability to purchase real estate. Instead, lenders are under strict guidelines to obtain a lot of information from buyers and submit it through many review processes and personnel before a written commitment can be issued.
It is important that buyers and sellers understand these time constraints and manage their expectations of how quickly the deal will proceed to closing. An experienced Ocean County real estate attorney should advise his or her client of the amount of time it will take to obtain a mortgage commitment.
As a buyer, it is important that the due date for the mortgage commitment is realistic: if it is unrealistic, and a mortgage commitment cannot be issued within the contractual timeframe, the seller may have the right to terminate the contract. Certainly, the seller may be willing to offer an extension, but it is not required.
As a seller, it is important to understand how long your buyer will need to obtain a mortgage commitment. If you choose an offer with a mortgage because it offers a very quick closing, you may be very disappointed to discover that it was unrealistic. Once a mortgage commitment has been issued, it usually takes about two weeks for a lender to clear the file to close. Start to finish, it is most common for a purchase with a mortgage to take roughly sixty (60) days to close. Any expectations short of this time frame are often unrealistic and lead to discontent.
NOTE: This page is for general information only and is not to be relied upon. You should consult a Toms River attorney so that we can assist you in bringing your real estate transaction to a successful closing.