Mortgage Loan Step by Step: From Paperwork to Keys

A mortgage loan can look like a maze, but it actually follows a clear sequence. Knowing what happens at each stage — and what to prepare — helps you avoid delays and surprises. In this guide we explain the process step by step, from prequalification to receiving the keys, with typical timelines and practical tips.

Step 1: Prequalification

Before you start house hunting, find out how much a lender will give you. Prequalification estimates your maximum loan amount based on your income, your debts and your credit bureau (buró de crédito) history. It is free, quick and sets the real budget for your search. For reference, check out how much you need to earn to buy a house.

Step 2: Choosing a loan and a bank

Compare your options: commercial banks, INFONAVIT, FOVISSSTE or combined schemes (cofinanciamiento). Don't look only at the interest rate; pay attention to the CAT (total annual cost), which includes fees and insurance. Check out our mortgage loan comparison to find your best alternative.

Step 3: Documents and application

Once you've chosen your loan, you submit the formal application and your documents:

• ID, CURP, RFC and proof of address.
• Proof of income and bank statements.
• Authorization to check your credit bureau report.
• Documents for the property you want to buy.

Also get ready with the checklist of documents for buying a house on the seller's side.

Step 4: Appraisal and approval

The bank orders an appraisal (avalúo) of the property to confirm its value and secure the loan. In parallel, it reviews your file and issues the approval with the final amount, rate and conditions. If the appraisal comes in below the purchase price, you may need to adjust your down payment.

Step 5: Signing and handover

Once approved, the notary public (notario) prepares the deed (escritura), the closing costs are paid, and you sign the purchase agreement and the mortgage. The bank releases the funds to the seller and you receive the keys. The transaction is then recorded in the Registro Público in your name.

Timelines and tips

From start to keys, the process usually takes anywhere from several weeks to a couple of months, depending on how quickly the appraisal is done, how fast you submit documents and the notary's availability. To speed things up:

• Have all your documents ready and up to date from the start.
• Take care of your credit bureau record and avoid taking on new debt during the process.
• Respond quickly to every request from the bank.
• Verify that the property is free of liens before moving forward.

Frequently asked questions

How long does a mortgage loan take?

It depends on the bank and your file, but it usually ranges from a few weeks to a couple of months from application to signing, with the appraisal and document submission being the steps that most lengthen or speed it up.

What is the first thing I should do?

Prequalification. It tells you how much a lender will give you and sets your real budget before you fall in love with a house that's out of your reach.

Does the loan cover closing costs?

Usually not. Closing costs are paid separately, although some loans allow you to finance a portion. Confirm this with your bank.

Can I switch houses in the middle of the process?

Yes, but it means redoing the appraisal and part of the property file, which delays the process. Choose carefully before requesting the appraisal.