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Mortgage Closing Timeline Checklist

The mortgage closing process can be complex and time-consuming, involving multiple parties and steps. To ensure a smooth transaction, it's essential to have a clear understanding of the timeline involved in closing a mortgage. This checklist outlines the key events and milestones that typically occur during the mortgage closing process.

Pre-Closing Phase (Weeks 1-4)

Week 1: Loan Application​

  • Submit loan application to lender
  • Provide financial documents, such as income statements and credit reports

Week 2: Underwriting Review​

  • Lender reviews loan application for approval or denial
  • Potential issues are identified and addressed

Week 3: Appraisal and Inspection​

  • Property appraisal is conducted to determine its value
  • Home inspection may be performed to identify potential issues

Week 4: Title Search and Insurance​

  • Title search is conducted to ensure clear ownership of the property
  • Title insurance is obtained to protect against potential title disputes

Closing Phase (Weeks 5-6)

Week 5: Loan Processing and Packaging​

  • Lender processes loan package for underwriting review
  • Finalize loan terms, including interest rate and repayment schedule

Week 6: Closing Preparation​

  • Lender prepares closing documents, including the mortgage note and deed of trust
  • Review and sign all necessary paperwork

Post-Closing Phase (Weeks 7-8)

Week 7: Funding and Disbursement​

  • Loan funds are disbursed to the seller or other parties involved
  • Mortgage is recorded with the county recorder's office

Week 8: Finalizing Escrow and Insurance​

  • Escrow account is set up to collect and distribute mortgage payments
  • Homeowners insurance is obtained to protect against potential losses