One of the more popular questions that people often ask me is “how long will it take to close my loan?” and many of them are surprised at my answer:

“Probably about 30 days, but a lot of that depends on you getting the requested documentation the underwriter asks for quickly.”

There are many steps to the loan process, but as a general rule these are the highlights of the mortgage process:

1. You first complete and sign application, get initial documentation to your loan officer
2. Loan officer submits your file to the processor who then processes the file
3. Processor submits your file to the underwriter who then underwrites the file and issues an approval subject to certain conditions
4. Loan officer works with you to gather requested documentation to satisfy the conditions that the underwriter asked for
5. Once all conditions are satisfied, the final closing documents are prepared by the closing department and sent to the title company
6. You meet at the title company and sign the final closing paperwork

In 2009, as a general rule, it seems like many lenders are able to get a loan done in approximately 30-45 days - but times can vary greatly. I have heard of a few lenders closing loans in 10 days and a few that are taking 180 days.

I also expect that in 2010 it may take slightly longer as each lender figures out their internal processes to adhere to the new RESPA rules that go into effect on January 1, 2010.

Because of the large variation it takes to get your loan closed between lenders, if you are on a time schedule (if you are buying a house, you most likely have a deadline) you will want to make sure that you ask “how long will it take to close my loan?”

And don’t be surprised if your loan officer tells you 10 days.

Or 180.