Mortgage Approval Process: Step-by-Step Timeline

The mortgage approval process can feel complex, but understanding the key steps makes it much smoother.
Whether you're buying in Ontario, Barrie, Bradford, Pickering, or the GTA, following a clear timeline will help you secure your home confidently.

Here’s your full guide.

Step 1: Get Pre-Approved

Your first step before shopping for a home is getting pre-approved.

Pre-Approval Advantages:

• Sets your maximum purchase price
• Locks in an interest rate for 90–120 days
• Signals to sellers that you’re a serious buyer

Required documents:

• Income proof (pay stubs, tax returns)
• Bank statements
• Employment letter
• ID verification
• Consent for a credit check

Tip:
Pre-approval typically takes 1–5 business days once all documents are submitted.

Step 2: Start House Hunting

With your pre-approval ready, you can now house hunt confidently within your budget.

Smart house hunting tips:

• Stick to your approved price range
• Consider property taxes and monthly utilities
• Always plan for a home inspection later

Tip:
Work with an experienced real estate agent to streamline the process and spot value opportunities.

Step 3: Make an Offer

Found the right home? Time to submit an offer.

Key offer components:

• Offered purchase price
• Deposit amount
• Closing date
• Conditions (like financing and inspection)

Including a financing condition ensures you're protected if final mortgage approval doesn’t go through.

Step 4: Finalize Your Mortgage Application

After your offer is accepted:

• Update your mortgage application with the new property details.
• Provide any updated documents requested by your lender or mortgage agent.
• Submit the signed purchase agreement.

This step ensures the lender officially approves you and the specific property.

Step 5: Property Appraisal

The lender orders an independent property appraisal to confirm the home's market value.

Why it matters:

• If the appraisal is lower than your purchase price, you may need to renegotiate or pay the difference.
• A good appraisal keeps the mortgage process moving forward.

Appraisal cost:
Usually $300–$500, often paid by the buyer.

Step 6: Underwriting

At this stage, the lender’s underwriting department reviews everything:

• Income confirmation
• Credit review
• Down payment verification
• Appraisal report

They ensure all conditions are satisfied before issuing final approval.

Tip:
Being organized and responsive with documents speeds up underwriting.

Step 7: Mortgage Commitment Issued

Once underwriting is complete, the lender issues a Mortgage Commitment Letter.
This formalizes your loan approval and outlines:

• Mortgage amount
• Interest rate and type
• Term length
• Payment frequency

After signing the commitment, your mortgage is locked in and ready for closing.

Step 8: Closing Preparation

Leading up to your closing day:

• Hire a real estate lawyer to handle the title search, money transfer, and registration.
• Arrange home insurance — lenders require proof before releasing funds.
• Transfer your down payment and closing costs to your lawyer’s trust account.

Estimated closing costs:
1.5%–2.5% of your purchase price, covering legal fees, land transfer taxes, and title insurance.

Step 9: Closing Day

On closing day:

• Your mortgage funds are transferred to the seller via your lawyer.
• You pay the remaining down payment and closing costs.
• The title is officially transferred to you.

✅ After registration, your lawyer gives you the keys — and you’re officially a homeowner!

Tip:
Plan for some flexibility on closing day — transactions can experience brief delays.

Timeline Summary

StepDurationPre-Approval1–5 business daysHouse HuntingFew weeks to a few monthsOffer to Close30–90 days

Tips to Speed Up the Mortgage Process

• Respond to document requests quickly.
• Avoid major financial changes (no new debts, no job switches).
• Keep credit utilization low.
• Provide full, accurate information from the start.
• Work with a mortgage agent who can troubleshoot and advocate fast.

Efficient teamwork between you, your agent, and your lawyer ensures a smooth transaction.

Final Thoughts

Understanding the mortgage approval process step-by-step empowers you to move through each phase with confidence.
From pre-approval to closing day, being prepared and responsive sets you up for a smooth, successful home purchase.

📞 Ready to get started with a seamless mortgage experience? Call Garry Sidhu today at 437-961-0004 and let’s unlock your path to homeownership!