How Long Does It Take to Get a Mortgage Loan Approved?

Getting approved for a mortgage loan is an exciting step in the homebuying process, but it can also be stressful not knowing how long it will take. Many first-time homebuyers wonder, “How long does it take to get a mortgage loan approved?” The answer depends on several factors.

In general, the mortgage approval process takes 30-45 days on average. However, it can range anywhere from 2 weeks to 60 days or longer. Here’s an overview of the key steps and timing of mortgage approvals.

Mortgage Approval Timeline

Here are the typical steps and time frames in the mortgage approval process

Initial Application – 1-3 Days

This includes completing your loan application, submitting required documents to your lender, and authorizing them to pull your credit report

Processing and Underwriting – 7-21 Days

The lender will verify all your application information, documents, and credit history. Then an underwriter will carefully review your full loan application and issue a loan decision.

Appraisal – 5-10 Days

An appraiser will evaluate the property’s value to ensure the loan-to-value ratio supports the requested loan amount.

Final Approval – 1-2 Days

Provided the appraisal value meets requirements, the underwriter will issue a final loan approval once all conditions have been cleared.

Closing – 1-2 Days

After final approval, the lender will prepare closing documents and schedule a closing date with you.

As you can see, even with a smooth process, getting a mortgage approved takes roughly 30 days start to finish. That said, it’s not uncommon for approval times to range from 45-60 days.

Here are some of the key factors that determine how quickly you can get approved:

Factors That Impact Mortgage Approval Times

Your Preparedness – Being “mortgage ready” with all documents and information needed will help expedite the process. Missing items cause delays.

Loan Program – Government-backed loans like FHA and VA mortgages often have quicker turn times than conventional loans.

Your Financial Profile – Strong credit and clear documentation of income and assets speeds things up. Weaknesses lead to more scrutiny.

Lender Workload – Application volumes fluctuate. During peak seasons, approval times slow across the industry.

Appraisal Timing – Getting an appraisal scheduled quickly is key. Appraiser availability varies.

Underwriting Efficiency – Some lenders have quicker underwriting turn times than others.

Closing Prep – Your lender’s closing team must review documents and schedule closing.

As you can see, the mortgage approval timeline can vary substantially based on your specific loan application and situation. Here are some tips to help expedite the approval process:

7 Tips for Faster Mortgage Approval

1. Get pre-approved – Being pre-approved shows sellers you’re qualified and speeds the formal approval process.

2. Have paperwork ready – Provide complete documentation upfront rather than trickling it in.

3. Stay organized – Use a system to track requested items and provide promptly.

4. Mind your credit – Keep credit card balances low and avoid new inquiries to help your credit profile.

5. Choose the right lender – Online lenders and smaller banks may provide quicker turn times over mega banks.

6. Be responsive – Reply to your loan officer’s requests ASAP to keep things moving forward.

7. Plan ahead – Allow 45-60 days in your home purchase timeline for a stress-free approval experience.

While most mortgages take 30-45 days to approve, putting these tips into practice can help expedite the process. But delays do happen, so build extra time into your homebuying plans.

Why Mortgage Approvals Take Time

Given that mortgage approvals often take a month or longer, some buyers wonder why it takes so long when applying for a home loan. There are a few key reasons approvals can’t happen instantly:

• Verification – Lenders must thoroughly verify your financial information including income, employment, assets, credit, and property value. This takes time.

• Compliance – To reduce mortgage fraud, approvals require compliance underwriting and quality control reviews before final approval.

• Processing – Mortgage documents must be properly prepared, checked, and reviewed. Humans still touch most aspects of origination.

• Third-Parties – Appraisers and insurance providers conduct key external reviews required for underwriting. Waiting on third-parties adds time.

• High Standards – Since the housing collapse, lenders have elevated approval standards. More scrutiny is the new normal.

• Fluctuating Volume – Application volumes constantly change, slowing processes when intake spikes.

While technology is improving turn times, underwriting will remain cautious in the wake of the housing bubble and financial crisis. Patience and good preparation are key.

When to Expect a Quicker Process

Despite typical 30-45 day timelines, some mortgage approvals do happen faster. Here are instances when lenders can often issue quicker approvals:

• Streamlined refinances of existing mortgages
• Pre-approvals with few conditions
• Small portfolio loans held by community banks
• Purchase of newer construction homes
• Strong credit borrowers with ample assets
• Low loan-to-value ratios below 80%

Scenarios like these present less risk and require less verification for lenders. But for most mortgages, borrowers should still plan for 30-45 days from application to approval.

How to Check Your Mortgage Approval Status

If your mortgage approval is taking longer than expected, you may be wondering how to check your status. Here are some tips:

• Ask your loan officer for a status update
• Check your lender’s website or app for status visibility
• Look for confirmation of key milestones like the appraisal completion
• Ask if any outstanding conditions are delaying approval
• See if the closing date has been pushed back

Proactively communicating with your loan officer is key. Be persistent for status updates if your approval is delayed.

Is There Anything You Can Do to Speed Up a Mortgage Approval?

While most of the timing around underwriting is out of your control, here are a few ways you may be able to nudge your approval along:

• Promptly provide any additional documentation your lender requests
• Stay in close phone and email contact with your loan officer
• Reply immediately if your loan officer has mortgage approval questions
• Don’t make any major purchases that could impact your credit scores
• Notify your lender if you’re able to close earlier than initially expected

Your diligence and cooperation with your lending team can sometimes accelerate mortgage approvals by a few days. But at the end of the day, approval speed is largely out of your hands.

Alternatives If You Need a Faster Mortgage Approval

For buyers in a time crunch, here are some alternative mortgage options that provide quicker approvals:

• Portfolio loans from small banks can sometimes cut a week or more
• Down payment assistance programs offer accelerated approvals
• Adjustable rate mortgages (ARMs) may streamline the process
• All cash offers waive financing and appraisal contingencies

But for most borrowers, a conventional 30-year fixed rate mortgage from a standard lender will offer the best overall value. The 30-45 day approval process is reasonable given the large loan values and risk lenders face.

The Bottom Line

Getting approved for a mortgage is a waiting game. While it would be nice if approvals only took days – or even hours – the verification and compliance required in underwriting makes that unrealistic.

To get a mortgage approved as quickly as possible, come prepared with complete documentation, organized records, and prompt responses to lender requests. But even if you do everything right, approvals still take an average of 30-45 days. Build flexibility into your homebuying timeline and work closely with your lender to get approved ASAP.