To understand why, we must consider the list various parties involved in the process:
- Seller
- Buyer
- Broker
- Lender
- Lawyer
- Appraiser
*This list generally covers the main parties involved, but is not inclusive of all possible parties during any given mortgage transaction*
From beginning to end, the process of completing a mortgage transaction requires the sharing of information (where applicable) between all parties. Each party has a role to play in the mortgage process and each has a general “turnaround time” in which they are able to make their contribution towards the completion of the mortgage process. If everything follows smoothly and there aren’t any hiccups along the way, then it is possible to complete the task within 4 days’ time.
Having said that, just because something is possible does not guarantee that it will occur. Every party involved works at their own pace and have their own set of policies and procedures. If there is missing information or if there is more information that is needed, then this prevents (naturally) the “smooth” progression of the mortgage process.
So what does this mean? Well simply put, if you are 4 days from closing and are just getting around to arranging the mortgage, then you are unlikely to meet the deadline considering the realistic delays that occur during the process.
Our advice? You need to give it at least a minimum of 2 weeks (7-10 business days) for the mortgage process to complete. This period of time allows for addressing unexpected delays that would otherwise prevent you from closing on time (or at all).
Whether you had received a pre-approval and thought you would be approved quickly, or thought your application would be easy because you’re in excellent financial shape, or any other conceivable reason that prevented you from completing the process sooner, it is never wise to leave it till the last minute and hope that it will complete in time. The risk is not worth taking!
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