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.