When you’re preparing to buy a home, understanding the mortgage loan process—both what you can see and what happens behind the scenes—can provide you with clarity and confidence. From preapproval to closing day, we explore the timeline of each stage of the mortgage loan process and explain what to expect during your mortgage process.
🏡 Start with Clever: Clever can connect you with experienced real estate agents who can answer your questions and support you at every step. Plus, if you’re eligible, you could get up to $500 cash back when you buy with Clever to help cover your closing or moving costs. Get matched with local Clever agents today .
1. Get preapproved
It’s recommended that homebuyers get preapproved even before they start shopping for a home. A preapproval letter from a bank or other type of lender shows sellers and their real estate agents that you’re seriously committed and can afford to buy the property, if selected.
To preapprove a homebuyer, the lender gathers information about their financial data and credit history to assess their borrowing capacity. They’ll run an automated check and, as a result, issue a preapproval letter that states the maximum amount the lender is eligible to borrow from them.
❗Note: Getting preapproved requires a hard inquiry on your credit reports, so it can temporarily lower your credit score.
📒 Likely needed documents: Government-issued ID, SSN, pay stubs, W-2 forms, tax returns, employment verification, proof of assets, bank statements
⏰ Timeline: 1-2 business days
2. Find a home and make an offer
While you’re going through open houses, viewings, and negotiations with listing agents, your lender will be on standby.
When you find a property you want to make your own, you’ll work with your real estate agent to submit a strong offer. This is where your preapproval letter will come in handy and, hopefully, increase your chances of signing a purchase agreement with the seller.
📒 Needed documents: Purchase agreement, proof of funds (or preapproval letter), earnest money deposit
⏰ Timeline: Varies, depends on the buyer
3. Apply for a mortgage
Once you've signed a purchase agreement, it’s time to apply for the mortgage officially. First, shop around to make sure you choose the best lender, as their interest rates and terms can differ significantly.
When considering a loan of this size, even a fraction of a percent can save you thousands in the long run. If you have a preferred lender, you can negotiate and ask them to match a better quote you got from a different lender.
💡 Did you know? You don’t have to apply for a mortgage through the lender that issued the preapproval, but it does speed things up.
You’re likely to submit similar documents to those during preapproval. However, since this is a more formal and in-depth process, your lender may request more information from you (e.g., the property’s address, sale price) than what was needed for a preapproval.
📒 Expected documents: Completed mortgage application, purchase agreement, government-issued ID, SSN, proof of income and employment, proof of assets, bank statements, retirement and investment accounts, and more
⏰ Timeline: 1 day + more for buyers to collect all needed paperwork
4. Home loan processing
At this stage, your application and all the documents are handled by the loan processor. This administrative professional works for the lender and will organize and verify all information and documents that the borrower provided. They’ll double-check every document for accuracy and consistency and alert you if there’s anything missing.
💡 Pro tip: It’s very common for a loan processor to request additional documents from the borrower at this point, so no need to get alarmed. Just respond to their requests as quickly as possible to avoid potential delays in your mortgage loan application process.
At this stage, your lender will likely order a property appraisal—an estimate of a property’s market value done by a licensed third-party appraiser. Lenders require this report to better understand the value of the house, ensure they’re not lending more money than the home is worth, and assess any associated risks.
At the end of this mortgage processing step, your mortgage file is prepared for an underwriter. No action will be needed from you, as your loan processor will pass on all documents to the underwriter for their final decision.
⏰ Timeline: 1-2 weeks, but it depends on the title and appraisal work
5. Mortgage underwriting
In the underwriting process, your application undergoes the most intense scrutiny. Any risks for lenders are thoroughly evaluated.
Your underwriter will review every aspect of your application and the property itself. They will:
- Examine your credit report and analyze your debt-to-income (DTI) ratio
- Verify your employer and income information
- Check for red flags in your financial history
- Verify that the property meets the loan guidance
- Evaluate appraisal and title reports for compliance
If an underwriter notices any significant flags, such as a decrease in your credit score, a lower-than-expected home appraisal value, or unverified deposits, they can deny your application. However, it’s more likely that they’ll instead ask for additional paperwork to clarify any concerns they have.
What should you do at this point? Don’t apply for any new credit cards or loans (that could ding your credit score). Be ready to address any inquiries immediately and stay patient.
⏰ Timeline: Up to a week, but more complicated cases can stretch to several weeks
6. Conditional and final approval
If the underwriter is satisfied with all the information you provided, you’ll receive a final approval on your mortgage. Congratulations! Also known as “clear to close,” this stage means your underwriter has finalized the process, and you’re ready to move forward with the home purchase.
However, in many cases, borrowers may receive a conditional approval first. If that’s the case, you’re likely to be approved for a loan, but an underwriter still needs some clarification. For example, a lender might ask you for additional paperwork, an explanation of the nature of a recent deposit, or proof of purchased homeowners insurance.
⏰ Timeline: 1-2 days for final approval after conditions are met
7. Closing disclosure review
At least three business days before your closing date, you’ll receive a closing disclosure from your lender. This document outlines the final details of the loan, including the loan amount, interest rates, and associated costs, among other key terms.
Carefully review your closing disclosure to understand all the details, and ask for clarification if anything appears different from what you expected. If there are any significant discrepancies, your closing date may need to be pushed back a few days until the issue is resolved.
⏰ Timeline: It’s legally required to provide the closing disclosure 3 days before closing to give enough time for the borrower’s review.
8. Closing day
Closing on a house is typically done at the office of the title or escrow company, and it’s the hard-won finish line of your mortgage application process. This is when the borrower pays closing costs, including origination fees, appraisal fees, escrow fees, and prepaid costs (such as property taxes and homeowners insurance).
This is also when the borrower will sign all the final documents, including property transfer forms, a closing disclosure, the mortgage note, and tax documents. After all signatures are collected and the seller has received the funds, you officially become the owner of the property and collect the keys.
📒 Needed documents: Government-issued ID, proof of homeowners insurance, a cashier’s check or wire transfer, and the closing disclosure. Other parties will likely provide all other necessary documents.
⏰ Timeline: 1-2 hours
Bottom line: Plan ahead to experience less surprises
The mortgage loan process is a complex journey that can typically take anywhere from 30 to 60 days—more when certain players are overextended or when there are errors to solve. Understanding what happens at each stage can help you move through the process with confidence and avoid the most common delays.
If you need support throughout your homebuying experience, an experienced real estate agent from Clever can answer many of your questions and assist you every step of the way. On top of that, you can get up to $500 cash back to help offset your moving expenses if you qualify.