How Long Does a Refinance Take After Appraisal?
The typical timeline to complete a refinance from start to finish is 30-45 days, but how long does it take after an appraisal? You shouldn’t have to wait much longer than two weeks to close on your mortgage after the appraisal is complete. Nevertheless, it is impossible to predict exactly how long it will take you to refinance after your appraisal because it can be delayed by other third parties. If you need assistance in gauging how long the process will take you, consult your lender. It is important that you provide as much information as possible so you do not delay the process inadvertently.
Refinance Appraisal Problems
When refinancing, the only appraisal problem you should worry about is having a low appraisal value. You might be unable to get the type of refinance loan that you want or not be able to get as much cash out of the property as you expected if your appraisal doesn’t match up with your expectations.
How Long Does It Take to Close a Loan After The Appraisal is Received?
In general, you can expect to close on a house within 30 to 45 days. Currently, it takes an average of 51 days to close a home purchase, according to a major insight report. The average amount of time it takes to close a loan varies based on loan type and housing market health, but the difference is not too significant.
There was little complexity associated with evaluating the buyer’s financial readiness and an appraisal and inspection of the seller’s home because of a 30-day closing process. Standard mortgage loans take on average 49 days, while FHA loans, with the longest average waiting time, take 54 days.
The better your organization and the clearer communication between the buyer, seller, and lender, the quicker the process will be and you will save both money and stress.
Can a Refinance Be Denied After Appraisal?
The simple answer is Yes. A refinance can be denied after appraisal because of the following reasons:
How An Appraisal Can Affect Your Refinancing.
A Low Appraisal
The lender is lending you money based on the value of the home you want to refinance, so the home should be worth at least what you are estimating. Upon submitting a loan application, the lender will send an appraiser to the property to determine its fair market value.
If the appraiser finds that your home is worth less than what you owe or less than what is beneficial from a loan to value standpoint, your loan could be denied or it may not be beneficial. If you believe that the appraiser overlooked important details concerning the home’s value, you may be able to appeal the appraisal.
There’s a problem with the Home
The appraiser may uncover issues with your property that do not meet the lender’s or loan’s requirements, such as inadequate running water or a leaking roof. A loan could be denied if repairs cannot be made before closing.
Your Credit Score Drops
Your lender uses your credit history to determine how well you handle your finances when you apply for a loan. A collection or late payment on your credit report after you’ve already been approved could lower your credit score below the minimum required and you may be denied the loan, if credit is required to be re-pulled.
Why Is My Refinance Taking So Long?
There are several reasons why a refinance can take a long time:
Appraisers are Busy
Appraisers have been extremely backed up due to the extreme number of refinances the last two years. As rates rise, the workload will be less, which will speed the turn times up.
Flood of Home Buying Applications
Just like Appraisers have overwhelming numbers of refinance orders, Lenders are inundated with applications for refinances and purchases. So, in the last two years, turn times for refinances have been extended.
To get more information or get Prequalified click Cain Mortgage Team or contact us today at 803 261 9267!