Mortgage application: Once you find a property and decide to move forward with a specific lender, you’ll need to complete a formal mortgage application. This process usually takes a few days to a week, as you’ll need to provide detailed documentation related to your income, assets, debts, and other financial information.
Loan processing: After submitting your application, the lender begins the loan processing stage. During this time, they review your documentation, verify your financial information, and conduct a thorough assessment of your creditworthiness. The processing stage typically takes a few weeks, but it can vary depending on the lender’s workload and the complexity of your application.
Underwriting: Once the loan processing is complete, the lender sends your application to the underwriting department. Underwriters evaluate your application, review the appraisal report, and ensure that the loan meets the lender’s guidelines and criteria. This process generally takes a few days to a couple of weeks.
Loan approval and closing: If your application is approved by the underwriter, the lender will issue a loan commitment and work with you to schedule a closing date. The closing process involves signing the necessary legal documents, transferring funds, and finalizing the mortgage. The time from loan approval to closing typically ranges from a few days to a couple of weeks.
It’s important to note that these timeframes are approximate and can be influenced by various factors, such as the complexity of your financial situation, property type, appraisal delays, and the efficiency of the lender’s operations. Working closely with your lender and promptly providing any requested documentation can help expedite the process.