With so many people rushing to lock in fixed rates, many lenders are seeing record volumes.  As a result, underwriting delays are widespread. 

In many cases, application turnaround times are five or more business days.  We’ve heard reports of certain low-rate lenders with 2-week backlogs in their queues. 

Normal approval times vary, but have traditionally been 1-2 days, sometimes even same-day. 

Tips when applying:

• If you are purchasing a property and need to lift conditions quickly, make sure to keep the above in mind. 
• If you want a highly competitive rate, ask the property vendor for five days minimum to arrange financing.  (Consulting a mortgage planner beforehand will help you gauge the required approval time.)
• If you need a pre-approval, be prepared to wait 5+ days in many cases.
• Have your documentation (job letter, pay stubs, etc.) on hand to minimize approval time.

On the plus side, once your application is submitted to a lender, that lender will guarantee you get that day’s rate if you are approved.  This generally applies regardless of how long it takes for the lender to issue an approval.

Last modified: April 28, 2014