According to a new Ellie Mae survey, the time it takes to close a loan is at a historic low. As Orlando title insurance providers, we are happy to see the home buying process being eased a little. On average, it is taking consumers 43 days to close a loan. Loan closing dates have not been this low since 2015. Jonathan Corr, President and CEO of Ellie May, says, “The purchase market continued to heat up in March, representing 63 percent of total closed loans. We also saw the time to close shrink to the shortest duration since February of 2015 at 43 days across all closed loans, purchases and refinances.”

This is great news for homebuyers. If buyers come across the perfect home and just recently started the loan approval process, the likelihood of finishing in time to put an offer in on the home is higher. Here are four steps buyers need to complete when searching for the perfect loan.

  • Compare Loan Options

Just like you’re going to evaluate different homes and how they would fit your needs, you should do the same for loans. Consumers can compare loans at credit unions, banks, and online to find the perfect fit. Take a deep look into details like the interest rate and the annual percentage rate (APR). It is recommended to do mortgage shopping within a two week period so that FICO doesn’t ding your credit score each time you pull your credit.

  • Request a Prequalification Letter

During your mortgage shopping, ask lenders for a prequalification letter that details the loan size that you may qualify for. Don’t worry; Even if you get a prequalification letter, you don’t have to get the loan from that specific lender.

  • Become Pre-Approved

At this stage, lenders are going to verify all the details that you provided such as employment, debts, identification documents, assets, income, and credit. Pre-approval will result in a conditional letter stating exact details of a loan that you are preapproved for.

  • Gain Final Approval

Once you find the perfect home, make an offer, and the offer is accepted, it is time to finalize your loan. The lender will do an appraisal to verify you are purchasing a home at an acceptable value. After the appraisal, it’s time to close!

As closing times continue to drop, your home closing quickly approaches. If you are looking for Orlando title insurance or an exceptional closing agent, contact us today. We’d be happy to help make your dream home a reality.

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