When is the Best Time to Apply for A New Mortgage?

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With mortgage rates always in jeopardy of rising, many potential homebuyers want to know when it is the best time to get that application into the lender’s hands. The truth is that there simply is no set in stone right or wrong time to apply for a mortgage, but there are a few different times in which you might want to consider getting that application into the bank. When you’re ready to buy a home, get the application into the bank. There is nothing like waiting and delaying the process, seeing rates go up and potentially losing out on a home you love because of something you could have avoided.

The right time to apply for a mortgage is when you are ready to buy a home. You will call your mortgage lender and ask to fill out the prequalification paperwork to get the process started. From there, you will find out what you are approved to borrow so that you can get your house hunting done. You will find your dream home – hopefully – and you will submit an offer, it will be accepted and you will then fill out the paperwork required to obtain a mortgage.

You already know that your prequalification is not a mortgage application. It might not mean anything in terms of actually being approved for a mortgage when the time comes – but that is something we’ve already discussed with you. What we are discussing here is when to get that paperwork into the bank to get the process finished faster. My mother-in-law closes mortgages for a living; and she says that there really is no way to get things done faster as it just depends on the bank, the paperwork, and the other factors that go into buying a home and finalizing the entire process. There’s nothing you can do about a delayed appraisal, one that doesn’t come in high enough or so many of the other dozens of factors that play into how quickly your mortgage lender is ready to finalize everything.

However, there are a few things you should know that might just speed up the process a bit. I can’t make you any promises that your mortgage will finalize any faster by following these tips but from the mouths of lenders, these are the tips that generally work well and often yield the best results.

Do Apply at the Beginning of the Month

The general rule of thumb is that many mortgage lenders work very hard to close out all their mortgages by the end of the month. By this rule, you’d want to apply at the beginning of the month so that the lender is able to work fully on your mortgage throughout the month and go with the ‘cycle’ of business that so many lenders work with. It’s not always true for all lenders, but it is true that most lenders are looking for new business at the beginning of the month. They’re far more invested in your mortgage when you apply now and they can get the ball rolling to increase their mortgage numbers by the end of the month.

Do Not Apply at the End of the Month

If you want a phone call back, you better apply at the beginning of the month. When you submit your mortgage application the last week of the month, your lender is too busy finalizing everyone else’s mortgages to begin the process on yours. For the most part, lenders want to close out as many mortgages as they can before the month ends, leaving you to wait until the beginning of the month to even bother with anyone looking at your paperwork. Again, it’s not always the case; but it has proved true in many instances.

Be Prepared

The best advice we can give you when applying for a mortgage at any time is to be prepared. When you have all the paperwork and documentation required to apply for a mortgage ready as quickly as possible, it can make the process a little bit faster. Additionally, it always helps to keep in mind that the date on which you expect to finalize your mortgage is just a guestimate for a while. It’s not set in stone; things happen and it’s not uncommon for that date to change.

When you are prepared for changes, delays and small issues, it makes the entire process that much simpler. When you go forward and expect to have thing done on this date and that date and you do not allow for mistakes, problems and things to come up; you’re going to be very disappointed. So while we can’t promise you anything, we can tell you that you might be far more relaxed during the mortgage application process if you wait to begin at the beginning of the month.

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