How Long Does a Mortgage Application Take?

Why understanding the mortgage process and closing timeline is important.

The mortgage process may seem daunting, but it's important to understand the ins and outs before beginning the home buying journey. A mortgage is a loan used to purchase a home, and the process usually takes several weeks from start to finish used by mortgage lenders and mortgage brokers like DocApply.com

There are a few key steps in the mortgage process and closing process:

1) Mortgage Application: You'll complete a mortgage application and provide financial information to the lender.

2) Mortgage Approval: The lender will review your application and credit history and determine whether you're approved for a loan and determine the mortgage offer.

3) Loan Closing: Once you're approved, you'll work with a loan officer to finalize the details of your loan and close on your new home.

It's important to understand each of these steps to avoid any surprises along the way.

Step 1: Getting Pre-Qualified

When you're ready to buy a home, the first step is to get pre-qualified for a mortgage. This gives you an idea of how much money you can borrow and what your monthly payments might be.

Getting pre-qualified is easy. You just need to have some basic information about your financial situation, such as your income, debts, and assets. Your lender will also need to pull a credit report.

Once you have this information, your lender will be able to give you a pre-qualification letter that states how much money you can borrow. This letter is not binding, but it's a good starting point when you're beginning the home-buying process.

Step 2: Finding the Right Home

Now that you know how long the mortgage application process takes, you can start shopping for your new home! This is an exciting time, but it's also important to take your time and find the right property for you and your family. We call this phase the house hunting phase. Here are a few things to keep in mind as you search for your dream home:

1. Location is everything. You'll want to consider things like the commute to work, schools in the area, and whether you're looking for a quiet neighborhood or a more vibrant community.

2. Size and layout matter. Think about how much space you'll need and what kind of layout would work best for your lifestyle. Do you need a single-family home, or would an apartment or condo be better?

3. Don't forget about amenities.

Step 3: Applying for a Mortgage

If you're in the market for a new home, one of the first things you'll need to do is apply for a mortgage. But how long does a mortgage application take?

The answer isn't so simple. It depends on several factors, including the type of mortgage you're applying for, the lender you're working with and how complete your application is.

However, you can expect the process to take anywhere from a few weeks to a few months. So, if you're planning on buying a home, it's important to start the application process early.

There are four main steps in applying for a mortgage:

1. Pre-approval

2. Application

3. Processing / Appraisal Process / Underwriting / title search / Final Approval

4. Funded

Step 4: The Mortgage Underwriting Process

The mortgage underwriting process is the final step in the approval process for a home loan. The underwriter will review the purchase agreement in an average time of 24-48 hours. This is standard in real estate FHA loan and conventional loan scenarios. Underwriters review all the information in a mortgage application to determine whether the borrower is a good risk for the lender, and this takes time to determine an accurate file.

This includes things like credit history, employment history, sale price, large deposits, necessary documents, bank accounts, length of time, big deposits, monthly income, and additional information.

Underwriters will also request additional documentation from the borrower if anything in the application Looks questionable. This could include things like pay stubs, tax returns, or bank statements. The goal of underwriting is to make sure that the borrower can afford the loan they are applying for.

The mortgage loan entire process can take anywhere from a few days to a few weeks. It depends on how quickly the borrower can provide any requested documentation and how backed up the underwriter is with other applications. Once completed the underwriter will issue the file as a mortgage preapproval or conditional approval.

Step 5: Mortgage Loan Approval and Closing

It's not uncommon for the entire mortgage loan approval process to take anywhere from 30 to 45 days. The timeline can be shorter or longer depending on a variety of factors, such as the type of loan you're applying for, the lender you're working with and how promptly you submit required documentation. 

Here's a look at what you can expect during the mortgage loan approval process before closing day. To some it is a complicated process, but the good news is different brokerages and different parties conduct business smoother than others. You might have a cash buyer or a veteran who wants to start the mortgage loan application process.

When you apply for a mortgage, your lender will pull your credit reports and scores from the three major credit bureaus (TransUnion, Experian, and Equifax). They will also ask for documentation of your employment history, income, assets, debts, and any other information that will help them determine whether you're a good candidate for a loan.

Conclusion: How to make the process go smoothly

There are a few things you can do to make the mortgage application process go smoothly. First, and an important step would be to be prepared to provide all the required documentation on purchase loans. This includes tax returns, pay stubs, bank statements, and more. If you have everything ready ahead of time, it will speed up the process.

Second, make sure you have a good credit score. The better your credit score, the easier it will be to get approved for a loan. If your credit score is on the lower side, you may still be able to get a loan, but it may take longer, and you may have to pay a higher interest rate.

Finally, work with a mortgage broker who can help guide you through the process and answer any questions you may have. A good broker will make things much easier and help ensure that everything goes smoothly.