The mortgage journey

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

1 week

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

2-4 weeks

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

2 weeks

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.

synovus.com/mortgage