Yale Roth M.A., M.Ed

How Long Does It Take To Close A Mortgage?

I get this mortgage question a lot – and it’s a valid one: “How long does it take to close the mortgage loan?”

Generally speaking, it takes about 30 days to close on a mortgage (or home loan.)

This time frame will depend on the lender volume and whether you are subordinating a second mortgage or home equity line of credit HELOC.

If you’re subordinating your second mortgage or HELOC, then expect the mortgage underwriting process to take 60 days as another lender is involved in the transaction and can potentially slow the mortgage underwriting process down.

If you’re just refinancing a first mortgage, here’s how the process will play out.

You complete the mortgage application and submit papers needed to underwrite the loan to the loan officer or mortgage broker.  In addition, there will be upfront disclosure forms that you’ll need to sign and return to the lender.

Once the application is completed and you return the signed mortgage disclosures together with your income and asset documentation (i.e. pay stubs, W2s, tax returns, and bank statements), an appraisal is ordered by the lender.

You will need to be available to let the appraiser into the home.  Generally, it takes the appraiser about 2 days to compete the home appraisal report, depending on how bust they are and the size and type of the property being appraised.

Once the appraisal is received by the lender, the loan will go to an underwriter.

The underwriter – in all likelihood – request additional paperwork from you and will begin to clear mortgage conditions.

It usually takes underwriting a couple of days to do this; however, this will also vary depending on the amount of mortgage volume, or how busy the mortgage company is.

While this is happening, the mortgage processor will order title work from the title company, which either you or the lender will choose.

In addition, they will contact your home insurance agent to let them know you are refinancing need to change the mortgagee clause on the home dwelling insurance policy.

All this happens “behind the scenes.”  You don’t have to do any of this work!

So once your  insurance declaration page has been changed, once the title work has been received back from the title company, and once the underwriter clears all mortgage conditions, the mortgage is clear to be closed!

In conclusion, it takes about 30 days to do this work; however, it can take longer depending on lender volume and there are no issues with mortgage underwriting.

Related Posts:

• Mortgage Questions – What Is A Mortgage Subordination?
• Can You Subordinate A Second Mortgage That Has A Prepayment Penalty?
• Mortgage Questions – Should I Do A Cash Out Refinance To Pay Off My Home Equity Line Of Credit HELOC?
• Mortgage Questions – Does It Make Sense To Do A Mortgage Subordination?
• 5 Mortgage Loan Types That May Help You Get What You Want