How long does a mortgage application take? Here are tips to speed up the processing time and to prevent financial damage in the event of a delay in the application.
Mortgage application lead time
Whoever buys a property wants clarity about the mortgage quickly. Certainly now that the housing market is overheated. Does the mortgage settle and how long does the mortgage application take? Speed may also be called for when transferring, for example if the mortgage interest rate rises.
The duration of a mortgage is the time between the application and the passing at the notary. A lot needs to be done in this. Documents must be submitted, tenders made and signed, after which the deed is drawn up. The lead time of a mortgage can therefore vary.
How long does a mortgage application take?
In answer to the question ‘how long does a mortgage application take’, we give an average of 4 weeks. You can imagine that the mortgage application of a divorced entrepreneur can take longer. For someone with a permanent contract who takes out a mortgage for the first time, the application is shorter.
You can also control how long a mortgage application takes, partly by supplying the required documents quickly and accurately. However, you also depend on the speed of the lender and the notary. They must assess the documents with a mortgage application.
In this article we therefore only provide the average time for a mortgage application. We are happy to give you a no-obligation indication based on your data.
Tips for a quick mortgage application
We have a number of tips for you for a quick mortgage application:
1. Know what your options are
Many buyers only think about the mortgage when they actually start buying a home. They then start the purchasing process, while they are not sure whether the financing will be arranged. With the following tools you can start the purchasing process with a certain feeling:
- Before you orientate yourself in the housing market, you can get an indication of your maximum mortgage.
- If you actually have a property in mind, you can immediately have an exact calculation made of whether you can buy the property.
2. Start the mortgage application on time
Contact a mortgage adviser before you buy. After explaining the mortgage process, the file is started immediately. You already provide a number of documents for this, for example to determine your income. You also make a number of choices based on your wishes and goals with the mortgage. The sooner your file is complete, the sooner your application can be processed.
3. Choose an independent advisor
An independent consulting firm offers mortgages from various lenders. In addition to the lowest mortgage interest and the best conditions, you can opt for a short lead time. An independent adviser knows the market and can point you to lenders where your mortgage application runs quickly.
4. Collecting documents
You must submit various documents during the mortgage process. The adviser indicates when which documents are required and also the way in which these must be supplied. Don’t leave these requests too long and follow them carefully. Some examples of why documents are rejected are:
- When the ID is forgotten to scan in the back.
- Documents are not sharp or not completely copied.
- With an online account statement, the entire month is not visible.
If there are still issues when checking the file, this often causes a delay. You should think of an unregistered BKR registration or study debt. A ground lease contract or a different valuation report can also cause extra questions from the money provider. Openness and a good inventory of the adviser are therefore crucial for a quick mortgage application.
6. Hurrying is rarely good
This saying also applies to a mortgage application. So don’t be put under pressure by the selling broker or a possible rising interest rate. All too often hasty decisions lead to more delays and major risks.
Promises such as a mortgage within 1 week can also create false expectations among consumers. In addition, the Netherlands Authority for the Financial Markets (AFM) believes that conusments must be well-informed and make well-considered decisions. The regulator has therefore banned advertisements from mortgage lenders aimed at speed.
Consequences for delays
The final agreement is an important moment when applying for a mortgage. It means the mortgage is complete. If that final agreement is not too late, then this has major (financial) consequences for the customer:
- In the worst case, the purchase is canceled and the customer is left with a fine of 10% of the purchase price.
- Or the customer is tied to an unfavorable mortgage contract for a new period.
Mortgage not around (on time)
If it is not possible to complete the mortgage application on time, it is important to limit the financial consequences. We have a number of tips for this:
- Quotation: Choose broad conditions for the mortgage quotation. This is often slightly more expensive, but your interest rate offer is valid for longer or you can extend it free of charge.
- Purchase: always include resolutive conditions in the provisional purchase contract. You will not pay a fine if the mortgage is not paid.
- Retransmit: The new mortgage does not come around on time and the old mortgage is extended. Then choose variable. This way you avoid extra costs.