How long does it take to close on a mortage once the loan is approved?

Question

Also,

Are mortgage closings only done at the end of the month??

Answer 1

It usually takes from a few days to two weeks to close after the loan is approved depends on what else needed to be done in your escrow account. After loan is approved, the money has not transferred to your escrow account. As soon as you transfer the money, you will be charged interest on it. Money usually transfers a day before escrow closed. You can close your escrow at any time during the month. But your goal is to close the escrow as close to the end of the month as possible to save on interest on your loan. To illustrate, if you closed the escrow on the 5th of a 30 days month period, you will be charged interest from the 4th or 5th day (depends on when escrow received money from lender) to the 30th day before your normal mortgage payment #1 kicks in. Now if you closed on the 28th day, you only need to pay 2 or 3 days interest on your loan and your normal mortgage payment #1 kicks in the following month. Based on these two scenerios, you just save yourself almost one month worth of mortgage payment.

Answer 2

Once the loan application is approved, it usually takes 6-8 weeks to get to the closing table. This is called the Escrow Period. There are certain things being done such as inspections, final walk-throughs, obtaining your first year's insurance, and surveys (if applicable).

Closings are not only done at the end of the month - they can be done at any time. You save money if you close at the end of the month because when you sign your closing documents, you are required to pay pre-paid interest on your loan. For example, if you close on the 15th of the month, you have to pay 15 days of interest on your loan. If you close on the 28th of the month, you only have to pay 2 days worth of interest on the loan.

Good luck and congrats!

Answer 3

From my experience, it's about a months from the day you apply till the day you close, but definitely withing 2 months. As for the seconsd question, never heard about closing on the end of the month only.