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How long does the mortgage loan application process typically take?

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How long does the mortgage loan application process typically take?

The mortgage loan application process can vary in duration depending on several factors, including the lender's procedures, your financial situation, and the type of mortgage you're applying for. On average, the process can take anywhere from 30 to 45 days, but it can be longer or shorter. Here's a general timeline of the mortgage application process:

1. PreApplication (12 Days): This phase involves researching lenders, gathering necessary documents, and getting preapproved or prequalified. Preapproval can typically be obtained in a matter of days.

2. Loan Application (12 Days): Once you've chosen a lender, you'll complete a formal loan application. This can usually be done in one or two days.

3. Document Review (12 Weeks): After submitting your application, the lender reviews your financial documents, credit history, and other relevant information. This can take up to a few weeks, depending on their workload and the complexity of your application.

4. Property Appraisal (12 Weeks): If you're purchasing a property, the lender will order an appraisal to determine its value. This process can also take one to two weeks.

5. Underwriting (24 Weeks): The underwriting process involves a detailed review of your application by the lender's underwriting team. They assess your risk and ensure you meet their lending criteria. This phase can take a few weeks and may require additional documentation or clarification.

6. Loan Approval (12 Weeks): Once underwriting is complete, the lender makes a decision to approve or deny the loan. If approved, they issue a loan commitment letter.

7. Closing (12 Weeks): The closing process involves finalizing all the paperwork, signing the loan documents, and transferring ownership of the property (in the case of a purchase). This can take one to two weeks, depending on scheduling and coordination.

8. Funding and Disbursement (13 Days): After closing, the lender funds the loan, and the funds are disbursed to the seller (in the case of a purchase) or used to refinance your existing mortgage.

The total time from application to closing can be affected by factors such as the lender's efficiency, your responsiveness in providing requested documents, and any unexpected delays in the process.

It's essential to work closely with your lender, promptly provide any requested information, and stay informed throughout the process to help expedite your mortgage loan approval. Delays can occur, so it's wise to build in some extra time when planning your home purchase or refinance.

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