The House Closing Process, Step By Step
Closing on a house happens over several business days and doesn't include weekends, which may extend your timeline. You can expect to advance through the following stages in the house closing process on this schedule:
Application (1 day)
Completing the loan application typically takes 1 day and can be part of the mortgage preapproval process. Be sure to complete your application as accurately as possible – errors or omissions can cause delays.
Add your name, Social Security number, income, the property’s address, estimated value of the home (provided by your lender) and the amount you want for the mortgage home loan.
Disclosure (under 1 week)
The disclosure stage typically takes a few days and is completed by the mortgage lender. The lender must supply the loan’s terms, including estimated monthly payments, fees and other closing costs.
Documentation (under 1 week)
If you’re organized and can anticipate the information your lender will need, the documentation process may only take a few days. At this stage, the lender will request income and asset documentation. If your assets are complicated – for example, if you’re self-employed with several sources of income – it’s a good idea to communicate that to your lender and have them tell you what paperwork they’ll likely need from you and when you should send it to help expedite the process.
Appraisal (1 – 2 weeks)
Your mortgage lender will order a home appraisal. A licensed expert will examine the home to determine its value. A home appraisal isn’t the same thing as a home inspection. Home inspections are typically optional and happen before getting an appraisal. And the home is inspected to uncover any damage or necessary repairs.
Underwriting (1 – 3 days)
During the underwriting process, underwriters evaluate your financial information to verify you meet all guidelines to qualify for the loan. An underwriter will examine your income, savings, assets, debt and credit history and confirm information about the property.
Conditional Approval (1 – 2 weeks)
Even if your documents are confirmed to be in order after underwriting, you may receive additional requests for documentation. The ask for more paperwork typically occurs during the conditional approval stage. Speak with your lender and have your documents ready to help expedite the process.
Cleared To Close (3 days)
After you receive final clearance to close and the final disclosure of terms, you must wait for a mandatory 3 days before you can sign your final paperwork. During those 3 days, carve out time to review your loan terms and get any expert advice you may need before signing.
Closing And Funding (1 day)
After you sign, there will be one last review of the documents and information by your lender, and then your mortgage will be formally recorded with your county.
