How Long Does It Take to Close a Mortgage?

Timeline to Close

Rae Hartley Beck

After months of searching and having several offers rejected, you’re finally under contract and can start bribing your relatives to come help you move. Congrats! But what day do you book the truck for? The timeline that it takes your individual mortgage to close varies more than you might think.

Closing Time Lines by Mortgage Type

Conventional mortgages are the most common type of mortgage. They take an average of 57 days to close in 2021, the most recent figures available, according to ICE Mortgage Technology (formerly Ellie Mae, the mortgage applications processor).

Federal Housing Administration (FHA) loans take a bit longer to close due to additional documentation requirements. They take an average of 62 days to close.

U.S. Department of Veterans Affairs (VA) loans have the most complex underwriting requirements and are only available through VA-approved lenders. As a result, they take the longest time to close—an average of 66 days.

Steps of the Closing Process

Once your offer is accepted, there are still several steps to your closing process. You can save a lot of time during closing by choosing your lender, your loan type, and your home inspector in advance. You also will want to get pre-approved with your preferred lender and have all of your documents in order before you ever go under contract. Note: Some of the following steps can be completed out of order or done out of order depending on your lender.

1. Schedule your home inspection right away. Depending on your area, home inspectors may be in high demand and scheduling several weeks out.
2. Authorize a hard credit pull with your lender.
3. Lock your rate. Deciding when to lock your mortgage rate can be difficult, but decide it quickly so that your loan can close on time.
4. Have your lender schedule your appraisal right away. Appraisers are frequently booked out several weeks.
5. Provide documentation to your lender. This will depend on your personal situation, but at a minimum, you should be prepared to submit bank statements, pay stubs, two years of tax returns, a photo ID, and your Social Security card.
6. The home inspection is completed. Negotiate any issues that are found with the seller to your satisfaction and your lender’s.
7. The appraisal is completed. If there is a discrepancy between the appraised amount and the sale amount, you’ll have to cover the difference, secure alternate financing, or negotiate the seller down.
8. Respond to any of your lender’s questions or requests for additional information as quickly as possible.
9. Receive and review your closing disclosure. By law, your lender is required to give you a closing disclosure at least three business days before you close.
10. Close on your new home!