There is one question which nearly everyone who is applying for a bond has. This is how long will it take to get an approval on a bond request. This is a good question because knowing the time frame can help people be prepared to begin the moving process. It is also important to consider what kind of time frame will be required to sell an existing home and to move into the new home.
When getting a home bond, you will need to figure in that it will take roughly 30 days to get the bond approved. It is known that the process will at least take this long, usually never being shorter than 30 days. It is common, however, that the bond closing length does take more than 30 days sometimes. During this time, you will be providing evidence that you can repay your bond back to the lender over the appropriated time as outlined in the contract.
Lenders look for a number of different things to prove that you are capable of paying back the bond. The most important is proof of income. Lenders want a professional document from your business which shows your income. If you are self employed you will need to show 2 or more years of consistent income. They will also require standard documentation such as a valid photo ID so they can verify your identity.
The most grueling part of the process is getting in the above stated paperwork. It might be frustrating at first because you might be turning in your paperwork the same day and they do not get to it until days later. Be patient, your bond is not the only bond. They have many bonds they process and work on daily. This is why 30 days or more is generally quoted.
Another thing which commonly leads to a delay is if you do not have some information which the lender needs for whatever reason. If this ends up being true then it is likely that you will have to deal with a third party in order to get whatever the lender is requesting. What this means is you now have another company you have to wait on.
The best thing that you can do to keep the process moving efficiently is be prepared. Discuss with your lenders representative what information you will need as the process progresses. Prepare all of these documents in advance and be ready to send them to the lender as quickly as possible.
Once you have submitted all of the documentation that the lender requires they will send it to an underwriter. It is probable that the underwriter will request additional documentation before finally approving the bond application .This information is usually related to proving what other documents declare. The key to success at this stage is to just reply quickly to the underwriter so they can continue the process.