How Long Does It Take to Close on a Mortgage?

The time it takes to close a mortgage loan varies with the type of mortgage, buyer/homeowner situations, and lender processing efficiency. According to Fannie Mae the average closing time for a new purchase is 46 days, and 49 days for a mortgage refinance.  A good rule of thumb, however, is to assume that a typical mortgage loan will take around four to six weeks to close from application date.

Delays in closing are due to underwriting requirements. When a loan officer puts your loan file together they have to submit it to a mortgage underwriter. If anything is missing the loan application is kicked back to the loan officer to gather the missing information.

Suggested Program: Arizona Home Plus Program

In some cases, the underwriter will require more documentation. If you are unable to close by the date listed in the real estate contract you will need to ask the seller for more time to close.

Here are some of the most common reasons for delays in closing:

  • Unable to trace down payment funds
  • Inexperienced loan officers
  • Late payments or collection accounts noted on the borrower’s credit report
  • Debt that needs to be paid off prior to closing
  • Additional updated bank statements needed
  • Delayed final walkthrough
  • Issues found in the title search
  • Liens or judgments on the property
  • Missing documentation
  • Incomplete loan application
  • Low appraisal
  • Agreed upon repairs not completed

How to close your mortgage quickly and on time:

  • Have all of your closing documents submitted
  • Make sure your funds are readily available
  • Don’t make any big-ticket purchases
  • Hire experienced people
  • Respond to all requests in a timely manner

If you’re planning to purchase, refinance, or learn more about mortgage rates our experienced mortgage professionals would love to sit down and discuss your needs. We look forward to hearing from you!

The Certo Team
55 N. Arizona Place Suite #103
Chandler, AZ 85225

Contact a licensed housing specialist now! 602-429-6789