You've applied for a mortgage and it seems like it's taking forever. Then it hits you---how long should it take, what should you expect and when should you expect it?

Don't panic—there's help. You may be surprised to learn that lenders don't mind explaining the mortgage process more than once. Most agree that a knowledgeable consumer is a more effective team player and helps bring the loan to a smooth, mutually successful closing. And while the mortgage process (as we'll outline) varies only slightly in its major components, each borrower's situation is unique.

The five major parts of the mortgage process (in typical sequence) are application, processing, underwriting, closing documents prepared by the lender, and loan closing with you, the consumer. The major components (and the length of time each takes to complete) are impacted by the loan type, the lender's requirements as well as the strength of the borrower.

The initial step, the loan application, takes between one and two hours. The borrower meets with the lender and provides information about income, debts, assets, facts about the property you're interested in and any purchase and sales agreement signed. The loan program is selected, you'll discuss the pros and cons of locking in the interest rate (with the lender writing the lock-option agreement, if applicable to lock in the interest rate).

You'll then review and sign the loan application agreement. With many lenders using desktop underwriting to input and process your information via a computer program and access your credit report online, this is often done at your initial meeting, if not before (i.e. at the time of pre-qualification.) And since borrowers are applying online for mortgages, much of this phase (and the others to follow) are expedited by phone, fax, and email.

The second step is processing the loan. Verifications regarding your employment, your bank deposits (especially the funds used to close the loan) as well as information about your rental payment history or previous mortgage payment history are secured.

During this phase, the appraisal and the title report are ordered and all information placed in your loan file. Depending on the amount of technology employed by the lender, the type of loan as well as how quickly employers and appraisers respond, this phase can take from a few days to two or more weeks.

In Part II of this article to follow, we'll cover steps three through five to help you safely and successfully navigate to the closing table!

Published: September 5, 2000

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Julie Garton-Good, DREI “The Frugal HomeOwner™” As a syndicated newspaper columnist, author and international speaker, Julie Garton-Good DREI, C-CREC™, is called “America’s Home Affordability Expert”, addressing more than 25,000 persons annually on topics of real estate industry trends and home affordability. She is the author of five real estate books and is the sole two-time recipient of the international "Real Estate Educator of the Year" award from the Real Estate Educators Association. In 1997, The National Association of Realtors® nominated Julie as one of the fifty most influential people in the real estate industry. She shared the list with only three other women.