The average time to close a mortgage ranges from 45 to 60 days, but many will close in 30 days or less
This is how much time it takes from starting a loan application to getting your “loan funding,” which is when the new home or refinance loan is officially a done deal.
Depending on the type of loan you are doing, credit profile, and loan purpose (purchase or refinance), your mortgage might be take a longer time or shorter time to close
If you have not started the application, or if you have not found the home you want to buy, the time it takes too close could be longer.
If you’re a first-time buyer or buying a home once again, you need to consider the house-hunting process. You need an offer accepted to get approved for a mortgage, so you can’t start the process in full until you’ve found the home you want. This could add an additional 1-2 months or more onto your timeline.
Closing timeline if you haven’t found a house yet
Closing on a house takes time. Exactly how much time depends on your “starting point.”
If you still have not found your dream home, you could still spend a month or two just visiting houses with a real estate agent.
Once you find it, it could take one to five days to make an offer, have the seller look at your offer, negotiate, and come to an agreement on price and other aspects of the real estate transaction.
Once this is done, you can make a full application for your home loan and get final approval for the specific home you’re buying
You should always get a pre-approval before you start looking for homes to speed up the process. Don’t let that 30 to 60 days go to waste.
Getting pre-approval means the lender gives a thumbs-up to all aspects of your home loan besides the property. Once you have an accepted offer, your lender already has a serious head start on your final approval.
Closing timeline if you’ve already found a house
If you’ve found a home already, it will probably take between 45 and 60 days to close the home mortgage, based on national averages.
Keep in mind your situation can vary widely depending on your credit score, employment history, and other aspects of your financial life.
Furthermore, you may be able to waive the appraisal requirement. But you can’t count on an appraisal waiver. Be careful not to
over-promise closing speed to your seller. Your purchase agreement will state a closing date. You are expected to stick to it, or potentially lose the house and your earnest money.
Above all, have an conversation with your loan officer about how long it will take to close your mortgage loan. Ask for a realistic or even pessimistic assessment, factoring in underwriting, processing, the appraisal, condition review, and closing/funding. It’s better to guess “long” than to have overly optimistic time frames you can’t reasonably hit.
If your house’s appraisal is complete, congrats. You’ve finished one of the longest steps in the mortgage process.
You’re probably thinking how much longer you’ll have to wait for the final walkthrough and your closing day.
Typically, mortgage underwriters work on your approval while the home appraisal is going on. So when the appraisal comes in, the lender should be more or less ready to go.
It shouldn’t take longer than two weeks to close on your mortgage after the appraisal is done.
It shouldn’t take longer than two weeks to close after the appraisal is done. That’s not a promise, though. There are still plenty of potential hang-ups.
Your lender could find an issue on the appraisal (peeling paint, a roof in need of repair, etc.) that needs to be addressed. Or the seller might have a problem with the home they are purchasing, delaying the sale.
Don’t let these things worry you. They happen all the time and usually are resolved in one way or another. Still, be observant with your lender. Make sure it is speeding your file through the rest of the loan application process.
Keep in mind closing times vary widely depending on the situation. A cash buyer, for instance, might close in a matter of days. A mortgage borrower with a questionable credit report and income verification may need 60-90 days or longer.