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Mortgage Application To Clear To Close Timeline
What is the timeline from pre-approval to clear to close?
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The general timeline from preapproval to “clear to close” on a home loan is 30-45 days. However, it can depend on several factors. Here’s the breakdown:
Preapproval:
It usually takes 1-3 days. This includes credit checks, income verification, and preliminary asset reviews.
House hunting and offer acceptance:
It could be days to months. Depending on market conditions and buyer preferences
Loan application: One day to submit a formal application after the offer acceptance.
Processing: 1-2 weeks: Lender gathers and reviews all necessary documentation.
Appraisal: 1-2 weeks to schedule and complete. It can take longer in busy markets.
Underwriting:
1-3 weeks Review of all documentation. May request additional information.
Conditional approval:
Usually, it is within the underwriting timeframe. The Lender may request additional documents or clarifications.
Clear to close:
1-3 days after all conditions are met Final review by underwriter
Total typical timeline:
30-45 days from offer acceptance to clear to close. It can be as quick as 21 days or up to 60+ days or more.
Factors that can affect the timeline:
Loan type (conventional, FHA, VA, USDA, NON-QM).
Borrower responsiveness in providing documents.
The complexity of the borrower’s financial situation.
Property issues (e.g., appraisal problems, title issues).
Lender’s current workload.
Market conditions.
Tips to speed up the process:
- Respond quickly to lender requests.
- Have all documents ready in advance.
- Choose an experienced lender and real estate agent.
- Be prepared for additional requests or clarifications.
Remember “clear to close” is not the final step – you still need to:
- Review the Closing Disclosure (usually three business days before closing).
- Do a final walk-through of the property.
- Attend the closing to sign the final documents.
Every loan is unique so that actual timelines can vary. It’s always best to stay in close communication with your Lender and real estate agent throughout the process to obtain the most accurate timeline based on your situation.