Once you have settled on a lender and the type of loan you want, it is time to make a formal application. The time between application and approval of the loan may be two to eight weeks. This is a time of anxiety for many borrowers, especially if there is some question as to whether they can qualify for the loan. Even for those who easily qualify, the delay can be frustrating.

It may help to understand what the lender is doing during this time. The lender’s most important task is to assess the risk involved in granting the loan. The lender must also prepare the necessary documentation on the loan to satisfy government regulators and investors who may purchase the loan. More->