A day-by-day, “best case scenario” timeline* may help you understand the mortgage process timing required by new Federal rules affecting mortgages for primary residence or second-home purchases.

Loan Applications BY PHONE:

  • Monday – Day 1. Homebuyer applies for loan on residential property
  • Wednesday – Day 2.  Loan originator prepares & overnights initial disclosures to homebuyer
  • Thursday – Day 4. Homebuyer receives initial disclosures
  • Monday – Day 8.  Earliest date upfront fees can be collected by loan originator**.
  • Monday – Day 15.  Earliest possible date to close (if appraisal is not required)
  • Monday – Day 22. Optimally, homebuyer locks in interest rate 10 business days** prior to desired closing date to allow enough eime for originator to lock in APR.
  • Friday – Day 26.  Appraisal completed and emailed four business days prior to close; preclosing TIL disclusre emailed four business days** before closing***. (sent if necessary as a result of the APR).
  • Monday – Day 28. Homebuyer receives pre-closing TIL;  homebuyer receives copy of appraisal (three buiness days prior to closing***).
  • Thursday – Day 32. Closing occurs.

Loan Appliation IN PERSON:

  • Monday – Day 1. Homebuyer applies for loan on residential property; initial disclosures to homebuyer; upfront fees collected by loan originator.
  • Monday – Day 7.  Earliest possible date to close (if appraisal is not required)
  • Monday – Day 14.  Optimally, homebuyer locks in interest rate 10 business days** prior to desired closing date to allow enough time for originator to lock in APR.
  • Friday – Day 18.  Appraisal completed and emailed four business days prior to close; preclosing TIL disclosure emailed four business days** before closing***. (sent if necessary as a result of the APR).
  • Monday – Day 21. Homebuyer receives pre-closing TIL; homebuyer receives copy of appraisal (three buiness days prior to)
  • Thursday – Day 24.  Closing occurs.

 

*Please be sure to talk to yor recommnded lenders regarging their regulatory and operational timelines.

**Saturday is a business day for purpose of disclosures

***Closing refers to the signing of the loan documents