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Day-by-Day Mortgage Process Schedule

    The schedule below outlines the mortgage process from when the seller accepts a buyer's Offer to Purchase through mortgage closing.  There is no set timetable for the mortgage process and there are numerous factors that influence how long it takes to process and close a mortgage including the following:

    • Real estate and mortgage market conditions which will dictate how busy your lender and other third-party service providers are
    • The amount of time and work required to address any contingencies included in the offer to pruchase, inlcuding potential repairs to the property
    • Lender underwriting process and follow-up lender requests
    • The length of time required to complete the appraisal report

    The schedule below shows an approximately one month timetable which is typically the shortest amount of time required to process and close a mortgage.  In some cases it can take two months or longer to close a mortgage and borrowers should be prepared for delays in the process.  Without a doubt, unanticipated issues come up when you get a mortgage and the process almost always takes longer than expected.

    Because of the uncertain timeframe, may borrowers elect to lock their mortgage.  When you lock a mortgage, all key terms such as interest rate and closing costs are agreed to by you and the lender at the start of the process and remain unchanged through the closing of your mortgage.  This eliminates the risk that your interest rate increases during the time it takes to process your mortgage.  If you decide to lock your mortgage, make sure that the length of your mortgage lock period is long enough to process and close your mortgage.  The length of your mortgage lock period should also match the length of time for which the offer to purchase for the property you are buying is valid.

  • Mortgage Closing Schedule
    Process Step Day Comments FREEandCLEAR Resources
    Seller Accepts Offer to Purchase with Contingencies
    (if any)
    1 The offer to purchase accepted by the seller may contain contigencies such as performing a home inspection that the buyer requires before completing the property purchase Offer to Purchase
    Submit Property Information to Lender 2 The lender uses the property information to order to open escrow and order the appraisal report Offer to Purchase
    Finalize Mortgage Application 2 The borrower provides the necessary personal information and financial documentation (pay stubs, bank statements, tax returns) to complete the mortgage application Mortgage Application Overview
    Consider Locking your Mortgage 2 Depending on the interest rate environment, the buyer should consider locking the interest rate on his or her mortgage. Consult your lender to determine if it makes sense to lock your mortgage Should You Lock Your Mortgage?
    Settlement Agent Opens Escrow 2 The mortgage closing process is administered by a settlement agent who opens an escrow or trust account Settlement Agent Opens Escrow
    Deposit Earnest Money / Deposit with Escrow 2 The buyer funds the deposit or earnest money, as specified in the offer to purchase, into the escrow or trust account Settlement Agent Opens Escrow
    Realtor or Buyer Orders Home Inspection Report 2 The buyer typically orders a home inspection report to identify any major issues with the property. Addressing any issues identified in the report may be one of the contingencies listed on the offer to purchase Home Inspection Report
    Lender Orders Appraisal Report 2 The lender orders an appraisal, a comprehensive analysis of the value of the home you are buying Appraisal Report
    Settlement Agent Orders Title Report 3 The settlement agent orders a title report, sometimes referred to as a title search or title abstract, from a title company. A title company or attorney examines county records to determine the legal ownership of the property and identify any recorded property liens or easements that could interfere with your ability to purchase the property Title Report & Title Insurance
    Review Loan Estimate 5 The lender must provide the borrower a Loan Estimate that outlines the key terms of the mortgage including interest rate, closing costs and mortgage features within three business days of the borrower submitting a loan application Review Loan Estimate
    Review and Sign Escrow Instructions 7 The settlement agent provides escrow instructions that outline the funds or property parties receive when the property purchase and mortgage close Settlement Agent Opens Escrow
    Buyer Clears Contingencies by Deadline 14 The property buyer and seller resolve any contingencies listed in the offer to purchase, such as any issues identified in the home inspection report. For example, the buyer may request that the seller pay to repair significant items identified in the report Home Inspection Report
    Accept or Clear Preliminary Title Exceptions 15 All parties work to resolve any issues (also called exceptions) that are identified in the title report such as an easement or unpaid property tax bill Title Report & Title Insurance
    Lender and Buyer Review Appraisal 17 The lender uses the appraised property value to determine the loan-to-value (LTV) ratio, or the ratio of the mortgage amount to the value of the property. If the appraised property value is significantly lower than the property purchase price this can make it challenging to obtain a mortgage Appraisal Report
    Receive Lender Underwriting Approval 21 Your complete mortgage application is reviewed by a lender underwriter. In some cases the application is approved but is subject to certain conditions that must be fulfilled before the mortgage closes Lender Underwriting Approval
    Settlement Agent Orders Loan Documents 24 The loan documents outline the key aspects of your mortgage and property purchase Loan Documents
    Review the Closing Disclosure (CD) 26 The lender must provide a Closing Disclosure (CD) to the borrower that outlines the final, actual terms of the mortgage including interest rate, closing costs and mortgage features at least three business days prior to the close of the mortgage. Borrowers should take into account the three day CD waiting period when determining how long it will take to close their loans Review Closing Disclosure (CD)
    Record Documents and Fund Mortgage 29 The settlement agent manages all of the logistics that are required to record documents and fund your mortgage. In short, the documents address the transfer of property and funds related to your property purchase Record Docs & Close Mortgage
    Closing! 30 The property seller receives his or her money and the buyer receives title / ownerhsip of the property. Your mortgage closes and you have bought a new home. Congratulations!!! Record Docs & Close Mortgage
  • Rate Details*
    Loan Program:  
    Monthly Payment:  
    APR:  
    Rate:  
    Points  More Info:
    Points: Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
     
    Total Lender Fees:  
    Loan type:  
    Property Value:  
    Loan to Value:  
    Credit Rating:  
    Date Submitted:  
    Monthly Housing Payments
    P & I More Info
    Principal & Interest: A periodic payment, usually paid monthly, that includes the interest charges for the period plus an amount applied to the reduction of the principal balance.
    Mortgage Insurance More Info
    Mortgage Insurance: The monthly cost for a policy that protects the lender in case you’re unable to repay the full amount of the loan. It is typically required for loans that have a loan-to-value ratio between 80% to 100%.
    (Estimated)
    Property Tax More Info
    Property Tax: (Also called "Real Estate Tax.") Property taxes are government assessments on real estate property. With mortgage financing, the local, county or state tax assessment on real estate property is considered part of the monthly housing obligation and typically collected and set aside by the lender ...
    (Estimated)
    Homeowner Insurance More Info
    Homeowner Insurance: or also commonly called hazard insurance, is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of its use, or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.lender ...
    (Estimated)
    Homeowner Association Fee More Info
    Homeowner Association fee: (HOA) fees are funds that are collected from homeowners in a condominium complex to obtain the income needed to pay (typically) for master insurance, exterior and interior (as appropriate) maintenance, landscaping, water, sewer, and garbage costs.
    (If Any)
    Total Monthly Housing Payments
    Lender Fees
    Points More Info
    Points Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
    Origination Fee More Info
    Origination Charge: A loan origination charge is a fee charged by the lender for evaluating, processing, and closing the loan.
    Credit Report Fee More Info
    Credit Report Fee: Fee charged to obtain an applicant’s credit history prepared by one or all of the three major credit bureaus. Used by lender to determine the borrower’s creditworthiness.
    Tax Service Fee More Info
    Tax Service Fee: A fee charged by the lender to cover the cost of retaining a tax service agency. These agencies monitor the property tax payments on the property and report the results to the lender.
    Processing Fee More Info
    Processing Fee: A processing fee is a charge by the lender for clerical items associated with the loan. Examples of processing include loan set up, organization of loan conditions for underwriting, and preparing required disclosures for the borrower.
    Underwriting Fee More Info
    Underwriting Fee: A fee charged by the lender to verify information on the loan application, authenticate the property’s value, and perform a risk analysis on the overall loan package.
    Wire Transfer Fee More Info
    Wire Transfer Fee: In most cases lenders wire funds to escrow companies to fund a loan. Commercial banks that perform this function will charge the lender so the fee is generally passed on to the borrower.
    (If Any)
    FHA Upfront Premium More Info
    FHA Upfront Premium: A fee paid in cash at the close of escrow or more commonly it is financed into the loan. These premiums are pooled together by the FHA and are used to insure the risk of borrower default on FHA loans. FHA upfront premiums are prorated over a five year period, meaning should the homeowner refinance or sell during the first five years of the loan, they are entitled to a partial refund of the FHA upfront premium paid at loan inception.
    (If any)
    VA funding Fee (If any)
    Flood Fee
    Other Fees More Info

    Other fees could be either additional Administrative Fees that a lender charges or it could be a Flat Fee to cover all lender charges such as: (Origination Fees, Points, Underwriting and Processing Fees, Credit Reports and Tax Service Fees)

    The flat fee does not include prepaid items and third party costs such as appraisal fees, recording fees, prepaid interest, property & transfer taxes, homeowners insurance, borrower’s attorney’s fees, private mortgage insurance premiums (if applicable), survey costs, title insurance and related services.

    Total Lender Fees
    *Actual rates and other information may vary. Sponsored results shown only include participating lenders. The information you enter on this page will only be shared with lenders you choose to contact, either by calling the phone number or requesting a quote.
    Current Mortgage Rates as of December 11, 2018
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    Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Click here for more information on rates and product details.
  • Sources

    Mortgage Closing Schedule: http://myhome.freddiemac.com/buy/prepare-for-closing.html

About the author

Harry Jensen, Mortgage Expert

Harry is the co-founder of FREEandCLEAR. He is a mortgage expert with over 45 years of industry experience. Over his career, Harry has closed thousands of loans for satisfied borrowers and now offers his advice and insights on FREEandCLEAR. More about Harry

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