How Long Does It Take To Get A Mortgage?

Securing a mortgage is an exciting step toward homeownership, but it can also be an intricate process filled with numerous steps and paperwork. Whether you're a first-time home buyer or a seasoned pro, understanding the timeline involved in obtaining a mortgage is crucial for a smooth and stress-free experience. So how long does it take to get a mortgage? The average time is 30 to 60 days but can vary for a variety of reasons. But, don’t worry. We’re here to help you understand each step in the mortgage approval timeline.

Getting A Mortgage Vs. Getting Mortgage Preapproval

Some first-time home buyers don’t realize that, technically, you “get” a mortgage at closing. That means going through the entire home buying process, including finding the house and getting your offer accepted. Getting mortgage preapproval is a much faster process.

Mortgage preapproval is the process of determining how much money you can borrow to buy a home. Lenders look at your income, assets and credit score to determine what loans you could be approved for, how much you can borrow and what your interest rate might be.

How Long Does Mortgage Preapproval Take?

The process of getting a mortgage preapproval can usually take up to 10 days. You may be able to speed the process up by having all paperwork needed ready and providing it to the lender as soon as possible.

Getting preapproved isn’t required, but it can give you some advantages when looking at houses. It’ll give you a better idea of how much home you can afford, establishes a starting place for your home buying budget and can make your offer more appealing to sellers.

Steps To Getting A Mortgage Approved

A lender needs specifics, including an address and an accepted offer, to completely process your mortgage application. The timeline includes these steps and others that come before them. Unfortunately, there is no universal timeline. Your time frame will depend on your circumstances.

Prepare Your Finances

Estimated Timeline: 1 Week

When applying for a mortgage, you'll need to provide various financial documents to the lender to assess your creditworthiness and ability to repay the loan. The specific requirements may vary slightly depending on the lender and the type of mortgage you are applying for, but generally, the following documents are commonly requested:

• Proof of income, such as pay stubs, W-2 forms and tax returns.
• Bank statements
• Employment verification
• Debt and payment obligations
• Credit information
• Identification and personal information, such as a government-issued photo ID and Social Security number

It’s essential to provide accurate and complete documentation to the lender to expedite the mortgage application process and increase your chances of approval.

Find A Mortgage Lender

Estimated Timeline: 1 – 2 Weeks

Finding a mortgage loan and lender goes beyond simply securing the lowest interest rate. It’s also important to make sure you feel at ease with the lending company that is handling your loan application.

Much of the mortgage process is the same across all lenders, but there can be some differences that affect the fees you’re charged and the service you receive. For this reason, it’s a good idea to shop around before choosing a lender.

Remember, while we strongly recommend you apply for preapproval because of the advantages you read about earlier, it is optional.

Find A House

Estimated Timeline: 4 – 8 Weeks

To maximize your time while house hunting, make a list of your must-have features and amenities. These may include a gas stove, a garage or a finished basement. Ask your real estate agent to filter out any homes that don’t have these requirements. If you have a family, or if you’re planning to start one in the future, consider the school district and crime rates in the area as well.

This step is one of the biggest variables in the process. Some people find a house quickly, while others search for months or even longer. While it’s not necessary, you may want to consider using a real estate agent. When choosing a real estate agent, there are a few things to keep in mind – the agent’s:

• Knowledge of the market and industry
• Experience
• Reputation
• Knowledge of the mortgage process
• Personal compatibility with you

Once you find a house that meets your criteria, you can make an offer the same day.

Make An Offer

Estimated Timeline: 24 – 48 hours

To determine a fair price, ask your real estate agent to run a comparative market analysis based on recent sales of similar homes in the area. Keep in mind that the state of the market will play a role in this – if you find yourself in a competitive seller’s market, you’re going to want to offer more than in a buyer’s market.

The offer will include information like your down payment amount, the type of mortgage loan you’re applying for and any contingencies you want (if any). The mortgage lender will assess all these factors during the application process.  

Go Through The Closing Process

Estimated Timeline: 30 – 45 Days

The closing process involves many steps and timelines can vary widely. This step will likely be one of the biggest variables in a borrower’s overall mortgage timeline. The closing process is an essential part of reaching closing day and receiving the title to your new house. Here are the typical steps in the closing process:

• Get a home inspection: A home inspection reveals important information about the home and can uncover problems that the average person might miss. This usually takes 2 – 4 hours.
• Get a property appraisal: After a buyer and seller agree to a price on a home, the appraiser is hired by the prospective lender to determine the home’s value. This is called a property appraisal. As long as the appraisal comes in as equal to or above the buyer’s offer, the loan process moves into the underwriting phase. The appraiser is usually onsite 1 – 3 hours.
• Go through the underwriting process: Mortgage underwriting refers to the final part of securing your funds to complete a home purchase. Your lender will verify your income, assets, debt and property details. The underwriting process is unique to your individual financial situation as a borrower. It can take a few days to a few weeks before you’ll be cleared to close.
• Do the final walk-through: One of the last steps before closing is the final walk-through. This is a home buyer’s last chance to inspect a house before closing day. The buyer and their real estate agent travel from room to room to ensure the home is in the agreed-upon condition. This is typically done the day before closing day. How long it takes depends on many variables, such as size of the house and the buyer’s attention to detail.
• Go to closing day: Closing day includes signing all paperwork, updating the deed, and paying your down payment and closing costs. This usually takes 1 1/2 – 2 hours.

Tips For Expediting The Mortgage Process

If you’re ready to hit the ground running, the following are a few tips to make your transaction as smooth as possible.

Save Up A Bigger Down Payment

The larger the down payment you make, the less money you’ll need to borrow from the lender. A larger down payment has many benefits, including the potential for faster approval and better overall loan terms.

Communicate With Your Lender

Be responsive and promptly provide the lender with any paperwork or answers to questions. By keeping the lines of communication open, your lender can keep you apprised and keep the mortgage approval process on track.

Avoid Major Financial Changes

Avoid changing jobs or making major purchases. A mortgage lender will be making their decision about approval based on your income and employment history, so switching jobs right before getting a mortgage can affect your approval possibilities. Making other major purchases can change your credit score and debt amount, which are closely looked at during the mortgage process.

FAQs: How Long Does It Take To Get A Home Loan?

We’ve given you a lot of information in this article, so let’s break it down into a few simple answers.

What is the average time it takes to get a mortgage?

The average time is 30 to 60 days. However, the time can vary based on several factors, such as the buyer’s financial standing, how long it takes the lender to complete underwriting, and how prepared the buyer is to move forward with the closing process.

What is the process for getting a mortgage?

Prepare your finances, shop for and choose a mortgage lender, find a house, make an offer, and once the offer has been accepted, go through the closing process.

How long does mortgage approval take after preapproval?

Mortgage approval after preapproval averages 30 – 60 days. As you can see, the mortgage process is fairly complex with many factors to consider and many items to check off the list.

The Bottom Line

When buying a home, it doesn’t feel like time is on your side. Its important to take the time to get your finances in order, including collecting any necessary documentation before getting started. When you’re ready to apply for a mortgage, start an application.