How long does it take to close on a mortgage?

Is there a standard number of days to close?

No. Federal rules set minimum waiting periods, not a standard closing time. On a purchase, the target date usually comes from your purchase contract, which you, the seller and your agents agree on. On a refinance, the date is set by you and your lender.

How long it really takes depends on a few things:

• how complete your documents are when you apply;
• how complex your income is, for example if you are self-employed or have rental income;
• whether an appraisal is needed and how busy local appraisers are;
• how quickly title, insurance and any HOA paperwork come back.

Ask your loan officer for a realistic timeline for your file before you agree to a contract closing date.

What are the main steps from application to funding?

1. Application. Under federal rules, you have applied once you give the lender six items: your name, income, Social Security number, the property address, an estimate of its value and the loan amount you want (12 CFR 1026.2(a)(3)).
2. Loan Estimate. The lender sends your estimated terms and costs.
3. Rate lock. You lock your rate for a set period.
4. Processing and underwriting. The lender verifies income, assets, debts and credit, and issues conditions.
5. Appraisal and title. The home's value and ownership are checked.
6. Clear to close. All conditions are met.
7. Closing Disclosure and the three-business-day review.
8. Closing and funding. You sign, the lender sends the money, and the deed and mortgage are recorded.

When will I get my Loan Estimate?

The lender must deliver or mail your Loan Estimate no later than the third business day after it receives your application, under 12 CFR 1026.19(e). The CFPB puts it simply: the lender must send it within three business days. The Loan Estimate must also be delivered or mailed at least seven business days before closing, so the ordinary minimum is seven business days after delivery or mailing. A qualifying personal financial emergency can permit a waiver.

What is the three-day Closing Disclosure rule?

You must receive your Closing Disclosure, a five-page form with your final terms and costs, at least three business days before you close. For this rule, a business day is every calendar day except Sundays and federal legal holidays, so Saturdays count (12 CFR 1026.2(a)(6)).

Most changes just mean a corrected form at or before closing. But three changes restart the three-day clock (12 CFR 1026.19(f)(2)(ii)):

• the APR becomes inaccurate. The CFPB explains the usual APR tolerance is 1/8 of a percentage point for regular transactions and 1/4 point for specified irregular transactions, with additional mortgage tolerances. An adjustable rate alone does not establish the 1/4-point tolerance;
• the loan product changes, such as from fixed to adjustable;
• a prepayment penalty is added.

A lower rate or lower fees does not restart the clock.

How does the appraisal affect timing?

The appraisal is often the step you control least. It depends on appraiser availability, the property and access to the home. Under the ECOA valuations rule, the lender must give you a copy of the appraisal promptly when it is done, or three business days before closing, whichever is earlier. You can generally waive that timing at least three business days before closing; a narrow exception applies to certain clerical-only revisions.

Some loans skip the appraisal. For certain conventional loans, Fannie Mae's Desktop Underwriter can offer value acceptance, in which case an appraisal is not required.

What commonly causes closing delays?

• Missing or late documents, such as a missing bank statement page or an unexplained deposit.
• Appraisal problems, such as a value below the price or required repairs.
• Title issues, such as old liens or ownership questions.
• Changes in your finances, such as a new debt, a job change or a large purchase during underwriting.
• Changes to loan terms that trigger a new Closing Disclosure waiting period.
• Self-employed income review, which can take longer to document.

What happens if my rate lock runs out?

Rate locks last a set time. The CFPB says locks are often offered for 30, 45 or 60 days, sometimes longer, and that extending one may be expensive. Your Loan Estimate does not show what an extension costs. Ask your lender before you lock, and choose a lock period that covers your expected closing date with some margin.

How can I help my loan close on time?

• Gather pay stubs, W-2s or tax returns, and full bank statements before you apply.
• Answer lender requests the same day when you can.
• Do not open new credit or move large sums of money until after closing.
• Schedule the home inspection early so repair talks do not stall the appraisal.
• Review your Closing Disclosure the day it arrives and compare it with your Loan Estimate.