The average time from formal loan application to closing day1 for homebuyers ranges from 43 to 51 days. This may make applying for a mortgage seem like a monumental task, but when you break the process into bite-size pieces, it's a lot more manageable. Here's what you need to know.
1. Formal loan application
Once you have an accepted purchase offer on a house, it's time to start a formal loan application.
Choose your loan program (fixed or adjustable rate, 15 or 30 years, conventional or FHA).
Provide details of any gifts or loans for the down payment.
Ask your lender about when to lock in your rate,2 which means your rate can't change before the closing.
Within three days after you complete your loan application, your lender will provide you with a Loan Estimate form that breaks down your total financing costs.
Tip: Your lender will typically lock your rate for 30 to 60 days so you can be sure it will be the same on your closing day.
2. Loan processing
Your house will be professionally appraised to establish the value of the property.
You can hire a home inspector to verify the home's condition.
Tip: A lender's title insurance policy is required for loans, and experts recommend that you purchase optional owner's title insurance3 to protect your investment in your home.
3. Loan underwriting
Your lender will verify your job history and review all of your financial documents.
Expect another check on your credit score and credit report.
Tip: Avoid taking on new debt until after your loan closes to reduce loan delays or denials.
4. Closing day
Three days before the closing you'll receive a Closing Disclosure form to review.
Closing costs range from 2% to 7% of the purchase price of the house. The average is 3%.
If an escrow account is required, your lender will set it up to pay your property taxes and homeowners insurance premiums.
Tip: The Consumer Finance Protection Bureau4 warns that scammers try to take advantage of buyers by emailing fraudulent wiring instructions. Don't respond to an email asking for funds until you check by phone with your title company to make sure it's legitimate.
Ready to start house shopping? Explore mortgage loan options from Synovus.
Important disclosure information
This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
Ellie Mae, "Origination Insights Report," published May 2020, accessed July 16,
Consumer Financial Protection Bureau, "What's a lock-in or a rate lock on a mortgage?" Updated August 4,2017, accessed July 17, 2020.
Hal Bundrick, "Title Insurance: What it is and why you probably need it," Nerdwallet, published September 18, 2017, accessed July 1, 2020.
Melissa Yu, "Mortgage Closing Scams: How to protect yourself and your closing funds," Consumer Financial Protection Bureau, published June 3, 2019, accessed July 16, 2020.
You are about to leave the Synovus web site for a third-party site
Third-party sites aren't under our control, and we are not responsible for any of the content or additional links they contain. We don't endorse to guarantee the goods or information provided by third-party sites, and we're not responsible for any failures or inaccuracies. Third-party sites may contain less security and may have different privacy policies from ours.