Wednesday, March 3, 2010

The Average Processing Time For A Loan

Mortgage Application


The average processing time for a loan can vary from lender to lender. The time frame can depend on the type of loan applied for and the number of applications being processed.


Mortgage/Refinancing


Mortgage lenders typically process your mortgage application, when you are buying a home, in approximately 30 days. The process can take longer if you don't have the correct documentation and paperwork. To refinance your current mortgage, it could take as little as 10 to 14 days if you have all the required documents, such as pay stubs, bank statements and tax returns, and if you have a good credit rating, according to Broker Out Post.


Auto Loans


An auto loan can be processed in 24 hours and, in some cases, four to six days depending on the lender. Before you apply, always ask about the processing time.


Personal Loans


A personal loan is unsecured which means the lender does not require any collateral, such as an automobile or a house, for security. This type of loan can usually be processed in 24 hours or less. If you apply early in the morning you may be able to receive funds in the afternoon.


Pay-Day Lenders


Pay-day lenders can usually process loans in 24 hours. These types of loans are for individuals with bad credit who do not qualify for standard or conventional loans. You will pay high rates of interest as well as fees.


Small Business Administration


As a small business owner you may qualify for a loan through the Small Business Administration. The processing time for these loans is one to five business days, according to Nu Wire Investor.

Tags: Business Administration, processed hours, processing time, Small Business, Small Business Administration, type loan