Mortgage Processing Guide: How Long Does It Take to Get a Mortgage?

May 14, 2019 (0) comment

how long does it take to get a mortgage

You’re eager to buy a new home or maybe even your first home.

You’ve found the perfect home, the one in which you see yourself and your family, you might then wonder: Now what?

Is the waiting going to take away all of your excitement?

From the application to the processing, getting approved for a mortgage feels like it takes forever!

On the positive side though, 7 out of 8 mortgage applications are approved nationwide. Do you plan to be next?

If so, you may be asking yourself: how long does it take to get a mortgage? Here’s your guide.

How Long Does it Take to Get a Mortgage?

You’re asking to borrow a large sum of money, so the mortgage process can be pretty time consuming and complicated.

There was a time when it easily took up to 3 months to get a mortgage. In the early part of this century, the process was much faster.

Many people were buying houses, there was a lot of competition between lenders, and the underwriting guidelines had become quite flexible.

And then…there was the mortgage crisis. Lenders left with unpaid mortgages knew they had to be more cautious when loaning hundreds of thousands of dollars to home buyers.

Currently, the process will typically take from 30-45 days on average.

There are Several Steps to Getting a Mortgage

Pre-Approval

This is the first step in the process. You can get pre-approved before you even start shopping for a home. This can take a week or longer depending on your individual situation.

You will receive a letter stating how much money you can borrow and will know to stay within your price range.

After you choose a lender, you will provide them with information regarding your income and debt. This information, along with documentation, will be used to determine how much money you can afford to spend on a home.

Being pre-approved will make the remaining mortgage process a bit quicker once you have found a home because that first step will be complete.

Application

This is where you formally apply for the mortgage once you are under contract for a home. The lender will have your information from the pre-approval process. This, coupled with the information on the property, will allow you to move forward.

You will receive details regarding the interest rate, monthly mortgage payment, and closing costs once the application is complete. You then have options as to choosing the best loan for your situation.

Loan Processing

You have chosen the type of loan that will work best for you. Now it’s in the hands of the loan processor.

All of your documentation will be verified by an underwriter and an appraisal will be ordered for the property. The appraisal can take up to a couple of weeks.

If the property is worth what you are willing to pay for it, the loan processing starts to get real. It will move from processing to underwriting to settlement.

Coordination is key in this step. There are several entities at work here, the loan officer, the appraiser, the title company, the escrow company, the insurance company, etc.

This step is the largest chunk of how long it takes to get a mortgage. If all goes smoothly, you can expect the process to stay in that 30-45 day range.

What Can You Do?

You can’t leave everything up to the lender. You play a big part in this process as well.

Getting pre-approved, having all of your finances in order, and being available when the lender needs questions answered all contribute to the mortgage process and will affect how long it takes to get a mortgage.

We have some tips that will help you get started and can guide you along the way.

Bruno Simpson

Bruno Simpson

Contributor at FHA Loan Search
Mr. Simpson is based in the San Francisco Bay Area and has nearly a decade of experience in credit score and reports analysis, loan origination and the home loan application process.

He is an experienced presenter on affordable housing topics including FHA, VA, and conventional home loan programs.
Bruno Simpson

Pre-Qualify For The Lowest Interest Rate

Get custom home loan advice from a mortgage expert today.

Get Started Here
FHA Loan Checklist Credit Check

Register to FHA Newsletter