You’ve been thinking about buying a home for months—maybe even years. Now that you’re ready, you’re probably wondering how long it will take until you get to pick up the keys. Of course, the time it takes to find a home you love is going to vary, but the average timeline to close a mortgage is just 42 days. At Better Mortgage, our modern online process makes it even faster; our average closing time is just 32 days.
To help you know what to expect at each step along the way, we’ve laid out a typical timeline for a homebuying journey—along with some tips and insights to help keep things moving smoothly. Here’s what you can expect.
Purchasing a home is likely the biggest financial commitment you’ll make in your life. Navigating the home loan process can feel overwhelming for first-time homebuyers.
In this comprehensive guide, I’ll walk you through the entire mortgage timeline from pre-approval to closing Knowing what to expect will help you feel informed and in control throughout your home buying journey
Here’s an overview of the key steps and how long each takes
Pre-Approval – 1 weekShopping for Homes – 2-3 monthsMaking an Offer – 2-7 daysLoan Application – 2-4 weeksHome Appraisal – 1 weekLoan Processing – 2-8 weeksLoan Underwriting – 1-2 weeksClosing – 1-2 days
Next, let’s look at each milestone in detail.
Step 1: Getting Pre-Approved (1 Week)
Pre-approval should be the first step you take. Here’s how it works:
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Compare mortgage lenders – Shop around for the best rates and fees. Online lenders, banks, credit unions, and mortgage brokers all offer home loans.
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Pick a lender – Choose one lender and complete their pre-approval application.
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Submit documents – Provide pay stubs, tax returns, bank statements, and anything else the lender requests. This verifies your income, employment, assets, and credit.
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Get pre-approved – If approved, the lender will issue a pre-approval letter stating the maximum loan amount you qualify for.
Most lenders issue pre-approvals within 3-5 business days. The letter is typically valid for 60-90 days.
Step 2: Shop for Homes (2-3 Months)
Armed with your pre-approval letter, you can start seriously viewing homes within your budget. The home search process takes time:
- Research neighborhoods
- View listings
- Attend open houses
- Make offers on houses you like
Expect this to take 2-3 months on average. Move quickly on homes you love since competition is fierce in hot markets.
Step 3: Make an Offer (2-7 Days)
When you find “the one,” make sure you:
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Submit a strong offer – Offer close to or at asking price, with favorable terms. Escalation clauses and appraisal gaps can give your offer an edge.
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Negotiate with the seller – Counteroffers are common until you agree on price and terms.
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Get an accepted offer – Once the seller accepts your offer, you are now under contract!
From the time you submit an initial offer to getting one accepted usually takes 2-7 days.
Step 4: Apply for a Mortgage (2-4 Weeks)
With an accepted offer in hand, you can now formally apply for your home loan:
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Choose a loan type – Common options are conventional, FHA, VA, and USDA loans. Your lender will help you pick the best mortgage for your situation.
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Complete the application – You’ll provide updated bank statements, tax returns, W-2s, and all details about the home purchase.
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Get a Loan Estimate – Within 3 days, your lender sends over a Loan Estimate outlining proposed loan terms.
The mortgage application typically takes anywhere from 2-4 weeks until approval.
Step 5: Home Appraisal (1 Week)
The lender will order an appraisal during the application process. Here’s how appraisals work:
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An appraiser will visit the home and evaluate its condition and market value.
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They compare the home to recent sales of similar properties.
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The appraisal report is submitted to the lender within 1 week.
If the appraisal value is lower than the purchase price, you may need to renegotiate or bring extra cash to close. But an appraisal at or above the price is reassuring.
Step 6: Loan Processing (2-8 Weeks)
After submitting your application, here’s what happens behind the scenes:
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The lender verifies all your employment, income, and asset documents.
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A title search is done to ensure a clear title transfer.
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Your credit and debts are re-checked.
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If needed, any prior loan conditions are satisfied.
This processing phase takes 2-8 weeks on average before the loan can be cleared for final underwriting approval.
Step 7: Loan Underwriting (1-2 Weeks)
Next, an underwriter reviews your entire loan application package:
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They validate your creditworthiness for approval.
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Your debt-to-income ratio and loan-to-value ratio are calculated.
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The underwriter issues final approval if you satisfy all requirements. Or, conditions may be set that you need to fulfill.
Underwriting often takes 1-2 weeks to get a clear-to-close. Then you’re nearly ready for closing!
Step 8: Closing (1-2 Days)
During the closing:
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You’ll review and sign your final loan documents.
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Any closing costs and down payment funds are due.
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Once signed, the home and deed transfer to you!
Closing usually happens 1-2 weeks after loan approval and takes 1-2 days to complete.
Closing disclosure: 1 day
3 days before closing, your lender must provide you a document known as a “closing disclosure.” The 3-day window gives you time to compare your final terms and costs to those estimated in the loan estimate you previously received. The closing disclosure will contain the exact figures of your monthly mortgage payment, as well as how much it will cost to close on your loan. If you have any questions, this is the time to ask your lender before you go to the closing table.
Mortgage application: 1 hour
When the seller accepts your offer (congrats!), you’ll start the process of officially getting approved for your home loan. The application usually asks questions about the property and occupancy type as well as your employment history and finances. Within 3 days of submitting your application, a lender must provide you with a “loan estimate”—which is a standardized document that contains your monthly payment, interest rate, and other associated costs of your mortgage.
From here, you’re ready to make the purchase official! First you’ll select the right home loan type and term and then lock in your interest rate. Then head through the processing and closing of your loan and onto owning your dream home.
PS: We’ve expedited the process at Better Mortgage, so you can complete your online application and lock your rate in as little as an hour—and we provide an instant loan estimate all the way back at pre-approval.
*for illustrative purposes only, closing times may vary.
What To Expect During The Mortgage Process
FAQ
How long does a mortgage take to process?
How long does it take for a home loan to be approved?
How many days before closing is loan approved?
What are the steps in the mortgage process?
Nevertheless, the mortgage process can be broken into a number of well-defined steps. Most people go through six distinct stages when they are looking for a new mortgage: pre-approval, house shopping, mortgage application, loan processing, underwriting, and closing. In this guide, we’ll explain everything you need to know about each of these steps.
How do I get a mortgage loan?
The first step in the mortgage loan process is to decide how much house you can afford, followed by preapproval, finding a home, choosing a mortgage lender and then submitting your mortgage application. After your application is approved, you’ll be responsible for the closing costs and down payment.
How long does it take to get a home loan?
Once you settle into your home, you face a new timeline of making mortgage payments for the life of the loan. Each mortgage runs on its own timeline, but from start to finish, you might need about three to five months to secure a property and a home loan. This process can be complex and confusing, especially if you’re a first-time homebuyer.
How long does a mortgage pre-approval last?
A typical mortgage pre-approval is valid for 6 to 9 months. After that time, you may need to reapply if you’re still hunting for a house. Once you’ve found a home and the seller has accepted your offer, the mortgage loan process truly begins. It’s time to apply for your home loan.