How long does it take for a mortgage to close?

Buying a home is an exciting milestone, but the time between making an offer and finally getting the keys can feel like an eternity. The typical mortgage process takes 30-60 days from application to closing, but the specific timeline can vary significantly depending on the type of loan you choose.

Conventional mortgages often move through the closing process faster than government-backed loans like FHA and VA¹. But the speed of your closing isn't the only factor to consider. Understanding the nuances of different loan types and other key variables can help you plan, avoid surprises, and select the mortgage that best fits your situation.

What’s the average closing time for a mortgage?

A mortgage closing time is the window between signing a purchase agreement and the final closing day. On closing day, you sign your loan documents, pay your closing costs, and the funds are disbursed so you can take ownership of the property.

The average overall closing time is about 42 to 43 days for a purchase loan – that is, for a mortgage used to buy a home. Refinance loans typically move a little faster, with shorter closing times, on average.

Here’s a quick look at the differences.

It’s important to note that these times are averages and not guarantees. Actual closing times can vary based on many variables, such as lender, loan, property type, and the individual borrower.

How long does it take to close on a conventional loan?

Conventional loans are mortgages that are offered by private banks and credit unions and are not backed by a government agency like the FHA or VA. They are the most common type of mortgage.

Conventional mortgage closing times are typically faster than government-backed loan times because they don’t involve specialized government reviews or paperwork or additional appraisal requirements. Conventional loans have a more streamlined underwriting process that usually moves efficiently.

This means that conventional loans can often close within about 35 days. Delays can occur, of course. For example, appraisal times may be longer than expected, lenders may run into documentation issues, or financial issues may arise on the borrower’s part.

How long does it take to close on an FHA loan?

FHA loans are mortgages that are insured by the Federal Housing Administration. They’re great for first-time buyers who may have lower credit scores or smaller down payments.

While FHA loans can take longer to close than conventional loans, every situation is different. This is why FHA loans can take anywhere from 30 to 45 days to close. The timeline can vary depending on appraisal conditions, underwriting, and repair requirements.

Here’s a rough breakdown of the FHA closing process:

• Loan application and processing: up to 30 days
• Loan underwriting: 7 – 14 days
• Title search and insurance: 7 – 14 days
• Closing: 1 – 2 days

Some of these stages overlap, so the overall process can change in length. There are specific reasons why FHA loans can take longer to close, however. An FHA-approved appraiser must conduct the appraisal, and any safety or habitability issues identified in an appraisal must be resolved before the loan can close. Mortgage insurance premium (MIP) requirements can also impact the loan processing timeline.

How long does it take a VA loan to close?

VA loans, which are backed by the Department of Veterans Affairs, are designed for eligible military service members, veterans, and certain surviving spouses. And somewhat surprisingly, VA loans may be one of the fastest-closing loans, if everything goes smoothly. According to Department of Veterans Affairs data citing ICE Mortgage Technology statistics from 2023, the average VA loan closed in just 32 days. By comparison, conventional loans averaged 45 days, and FHA loans averaged 46 days.

It’s surprising because VA loans have many unique and required steps. These include:

• Borrowers must obtain a Certificate of Eligibility (COE).
• A VA appraisal is required and must be performed by a VA-approved appraiser.
• VA appraisals also evaluate the property against the VA's Minimum Property Requirements (MPRs).
• Any repairs noted by the appraiser that are required under MPRs must be completed before closing (extending the timeline).
• The underwriting process may take around 5 – 15 days.

You can increase the odds of an efficient and speedy closing time by doing a few things. Request your COE early, work with a lender that’s experienced in VA loans, and get preapproved so you, and the lender, know you can afford the loan you want. Finally, establish if a property has any MPR issues that could impact moving forward with the loan, and estimate and prepare for VA loan closing costs.

What factors affect how long a mortgage takes to close?

It’s important to understand that the timelines stated above are averages. There are many factors that can expedite or delay closing times. Here’s a list of some common ones to be aware of:

• Preapproval status: Once you have a mortgage preapproval, you have a head start because the lender understands your finances before your official application. They already have a good idea that you can afford a house and have some documentation out of the way.
• Document responsiveness: The faster you can provide documents requested by the lender, the faster the process can move. That’s why it’s a good idea to gather pay stubs, bank statements, tax returns, and other financial documents prior to applying.
• Appraisal scheduling and outcome: Appraisals can take a few days to a few weeks. In remote or high-demand markets, scheduling delays add time. Further, a low appraisal or one that reveals required repairs (especially for FHA and VA loans) could extend the closing timeline.
• Property condition: Government-backed loans require properties to meet specific standards. Issues found late in the process can cause significant delays.
• Underwriting complexity: Applicants with stable employment, clear assets, and no unusual deposits may move through underwriting faster than an applicant whose file raises potential flags.
• Mandatory waiting periods: Federal law requires a 3-business-day wait after the Closing Disclosure is issued before signing. This applies to all loan types. The Closing Disclosure details all aspects of the loan, so you should study it closely.

Tips to help your mortgage close faster

While some delays when closing on a house are unavoidable and unforeseeable, there are concrete steps you can take to ensure unwanted surprises are cut to a minimum. Here are solid moves you can make to help shrink your closing time.

Get preapproved before shopping

Getting preapproved before shopping for a home does many positive things. It gives you a good idea of how much house you can comfortably afford. It means the lender has already reviewed your income, assets, debts, and credit before you apply for a loan. And it makes you a more competitive buyer because it shows sellers you are serious and able to buy their home.

Respond to lender requests quickly

Mortgage timelines can stall thanks to a bottleneck of requested documents. When a lender requests a document, try to respond quickly. During the loan approval process, it’s important to check your email regularly and keep your paperwork well-organized.

Choose the right loan type

As we’ve seen, different loan types have different requirements. A conventional loan may have fewer process requirements. On the other hand, if you’re eligible for a VA loan, a well-prepared file may help move the process along faster.

Work with experienced professionals

There’s nothing like experience when it comes to navigating the nuances of loan approval. A real estate agent and lender who knows your loan type – especially for VA loans – can anticipate potential speedbumps before they become roadblocks.

Avoid major financial changes

Stability is what makes lenders feel comfortable. So, avoid opening new credit accounts, making any large purchases, or changing jobs just before or during the closing period. Large deposits also can be a red flag to a lender. These can all lead to more scrutiny and review from underwriting, which can cause delays.

The bottom line: Closing faster starts with preparation

When it comes to closing on a mortgage, the timeline can vary greatly due to loan type and other factors, averaging 30 – 60 days. In general, average closing times for conventional loans are often faster than government-backed mortgages, such as FHA and VA loans. However, there is good evidence that a well-prepared VA borrower can close just as fast as an efficient conventional loan borrower. So, it’s most important to choose the loan type that best fits your needs and goals.

When you’re ready to explore the best loan type for your situation or begin the preapproval process, you can start with Rocket Mortgage.

¹ Rocket Mortgage is a VA approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.