Understanding the Mortgage Timeline: A Step-by-Step Guide for Homebuyers

Are you dreaming of owning a home but unsure where to start with the mortgage process? The journey can seem complex, but knowing the steps can make it less daunting. Whether you’re a first-time buyer or an experienced homeowner, here’s a breakdown of the typical mortgage timeline, explained in plain language.

1. Shop Around for Pre Approval Offers (Up to 45 Days)

The first step is getting preapproved. This involves comparing lenders to see who offers the best rates and terms for your financial situation. You’ll want to get preapproval from multiple lenders, which can take up to 45 days.

Pro Tip: Checking your credit score and financial health before this stage can save you headaches down the road. Lenders will look at your credit score, income, and debt-to-income ratio.

2. Find a Home and Make an Offer (Up to 10 Weeks)

Once you have pre approval, the next step is the most exciting—finding a home! On average, this stage can take up to 10 weeks, as you’ll want to consider multiple properties, make an offer, and negotiate with the seller.

Fun Fact: The average homebuyer visits 8 houses before making an offer!

3. Choose a Lender and Apply for a Mortgage (<1 Week)

Once you’ve found your dream home and the seller accepts your offer, it’s time to pick a lender officially. You’ll need to lock in your rate and fill out the full mortgage application. This can usually be done in less than a week.

Tip: Float your rate if you think interest rates might drop during this time. Otherwise, lock it in.

4. Underwriting, Appraisal, and Loan Processing (3-4 Weeks)

Now comes the waiting game. The lender will process your loan, which includes underwriting, inspection, and appraisal. Underwriting is where the lender confirms that you qualify for the mortgage, while appraisals ensure the home is worth the loan amount. This takes around 3-4 weeks.

Warning: Be prepared for potential delays due to extra documentation requests.

5. Closing on the Property (<1 Week)

The final step is closing on your home. This typically takes less than a week, where you’ll sign the final paperwork, transfer ownership, and get the keys to your new home.

Pro Tip: At closing, you’ll pay closing costs, which can range from 2% to 5% of the loan amount.