How long does it take to Refinance? - Mortgage Choice (2024)

FAQs

How long does it take to Refinance? - Mortgage Choice? ›

Refinancing typically takes between 30 and 60 days. Government-backed Streamline Refinance loans, which often don't require an appraisal, may close faster.

You can refinance your mortgage loan to get a lower interest rate, change your term, consolidate debt or take cash out of your equity. There's no exact time limit on how long a refinance can take. However, most refinances close within 30 to 45 days of applying for the refinance loan.

You must wait at least 210 days from closing on the original loan and must have made at least six payments. FHA rate-and-term refinance: Non-FHA borrowers can refinance a current mortgage to an FHA loan. The FHA does not require a waiting period, though some lenders may impose one.

A refinance loan is the only type of mortgage that can be underwritten in less than 21 days. The reason underwriting can take this long is because your loan officer will need to verify your income, assets and debts.

From application to approval and closing, getting a mortgage can take anywhere from 30 days to 60 days. However, some home purchases can take longer, depending on factors unique to the purchase transaction and the home loan processing time.

Lenders will likely comb through your credit report more than once during the process and will have questions about any new credit. This can slow things down. Incomplete paperwork. Sending incomplete paperwork will require back and forth communication and may cause delays in the refinance process.

You'll typically need a home appraisal to refinance your mortgage, both to confirm your home's value and to set your new loan amount. If your refinance appraisal comes in too low, though, you may not be able to refinance unless you use a streamline (no-appraisal) refinance program.

Many homeowners have the option to refinance into a lower-rate loan immediately, with no waiting period. Others may only need to wait as little as six months. This means there's a strong possibility that you're eligible for a mortgage refinance at today's favorable rates.

Is underwriting the last step? ›

Final Underwriting And Clear To Close: At Least 3 Days

Once the underwriter has determined that your loan is fit for approval, you'll be cleared to close. At this point, you'll receive a Closing Disclosure.

Each situation is different, but underwriting can take anywhere from a few days to several weeks. Missing signatures or documents, and issues with the appraisal or title insurance are some of the things that can hold up the process.

Usually, approving a mortgage takes two to six weeks, but this may vary. The timeline depends on several factors, including your circ*mstances, the lender's availability and the findings from your property's valuation.

How do you know when your mortgage loan is approved? Typically, your loan officer will call or email you once your loan is approved. Sometimes, your loan processor will pass along the good news.

Working through each step is part of the reason why it can take 30 – 45 days on average to move from underwriting to closing.

Your credit score gauges how likely you are to repay a loan and is usually measured on a scale from 300 to 850. To be approved for a conventional mortgage, you typically need a minimum 620 credit score. If your score is below the mid-600s, however, you may have a harder time qualifying for a refinance.

Many homeowners have the option to refinance into a lower-rate loan immediately, with no waiting period. Others may only need to wait as little as six months. This means there's a strong possibility that you're eligible for a mortgage refinance at today's favorable rates.

Many lenders will require at least a year of payments before refinancing your home. Some refuse to refinance in any situation within 120 to 180 days of issuing the loan. The more money you put into your home, the easier it will be to refinance, regardless of when you do it.

You can refinance your home loan as soon and as often as you'd like. That said, if you want to refinance with the same lender, you're likely required to wait 6 months. From the moment you submit your new loan application, you can expect the refinance process to be over in around 30 to 45 days.