Buying a house is a big step, and one of the first things you’ll need to do is get pre-approved for a mortgage. But how long does it really take to get approved? The answer, like most things in life, is: it depends.
Factors that can affect the mortgage pre-approval timeline:
- Your financial situation: This includes your credit score, income, debt, and assets. The better your financial situation, the faster you’re likely to get pre-approved.
- The type of mortgage you’re applying for: Some mortgages, like government-backed loans, may have stricter requirements than others.
- The lender you choose: Some lenders are known for being faster than others.
- The time of year: The mortgage market can be busier during certain times of the year, which can slow down the pre-approval process.
Here’s a general timeline of what you can expect:
- Gather your documents: This includes your pay stubs, tax returns, bank statements, and other financial documents.
- Apply for pre-approval: You can do this online, over the phone, or in person at a bank or credit union.
- The lender will review your application: This typically takes 1-3 business days.
- The lender will make a decision: If you’re approved, you’ll receive a pre-approval letter. This letter will state the amount you’re pre-approved for, the interest rate, and the terms of the loan.
In general, it takes 7-10 days to get pre-approved for a mortgage. However, it can take longer in some cases. For instance, getting pre-approved could take several weeks if the lender is busy or you have a complicated financial situation.
Here are some tips to speed up the pre-approval process:
- Gather your documents ahead of time. This will save you time and hassle later on.
- Apply for pre-approval with multiple lenders. This will give you more options to choose from and help you find the best interest rate.
- Be prepared to answer the lender’s questions. The more information you can provide, the faster they’ll be able to make a decision.
Once you’re pre-approved, you can start shopping for a home. You can get a good idea of how much you can afford to spend from your pre-approval letter. Additionally, it will demonstrate to sellers your seriousness as a buyer, which may help you get your offer accepted.
Here are some additional things to keep in mind:
- Your pre-approval is not a guarantee that you’ll be approved for a mortgage. The lender will still need to verify your information and approve your loan application.
- Your pre-approval letter will expire after a certain amount of time. Typically, pre-approval letters are valid for 30-90 days.
- The interest rate you’re pre-approved for may change. Interest rates fluctuate, so it’s important to lock in your rate as soon as possible.
Getting pre-approved for a mortgage is an important step in the home buying process. By following the tips above, you can speed up the process and get one step closer to buying your dream home.
Additional Resources:
- How to Get Pre-Approved for a Mortgage: https://www.nerdwallet.com/article/mortgages/how-to-get-preapproved-for-a-mortgage
- What to Do After Getting Pre-Approved for a Mortgage: https://www.rocketmortgage.com/learn/what-to-do-after-getting-pre-approved
- Mortgage Pre-Approval vs. Pre-Qualification: https://www.investopedia.com/terms/p/preapproval.asp
FAQs:
- How long does it take to get pre-approved for a mortgage with bad credit?
It can take longer to get pre-approved for a mortgage with bad credit. However, there are still lenders who are willing to work with borrowers with less-than-perfect credit. You may need to pay a higher interest rate or make a larger down payment, but it is still possible to get a mortgage.
- Can I get pre-approved for a mortgage without a job?
It is possible to get pre-approved for a mortgage without a job, but it will be more difficult. You will need to have a strong credit history and a large down payment. You may also need to provide additional documentation, such as bank statements or tax returns, to show that you have a stable source of income.
- What happens if my pre-approval expires?
If your pre-approval expires, you will need to get pre-approved again. This will involve submitting a new application and providing the lender with updated financial information. The interest rate you’re pre-approved for may also change.
- Can I get pre-approved for a mortgage online?
Yes, you can get pre-approved for a mortgage online. Many lenders offer online pre-approval applications. This is a practical method of obtaining preapproval without physically visiting a bank or credit union.
- Do I need to pay anything to get pre-approved for a mortgage?
No, you do not need to pay anything to get pre-approved for a mortgage. However, you may need to pay a fee if you decide to apply for a mortgage after you’re pre-approved.
How long does it take to get a mortgage pre-approval?
The speed at which you can submit the necessary paperwork to the lender and the lender’s mortgage pre-approval procedure will determine how soon you can get pre-approved for a mortgage and receive a pre-approval letter. Generally, pre-approvals take 7 to 10 days, but sometimes they can be granted faster. To expedite the pre-approval period for a home loan, you should gather the financial records the lender needs, such as g. , W2s, proof of income, tax returns, etc. ). Knowing how much you can afford to pay for your mortgage each month will also be helpful. You can use this Mortgage Qualifier Calculator to estimate your monthly payment and find out how much you can afford for a new house. At Credit Union of Southern California (CU SoCal), we make getting a mortgage easy! Call 866. 287. 6225 to arrange a free consultation and discover more about our personal and auto loans, home equity lines of credit, mortgages, checking and savings accounts, and other banking offerings. As a full-service financial institution, we look forward to helping you with all your banking needs. Read on to learn more about how long it takes to get a mortgage pre-approval.
What is a mortgage pre-approval?A pre-approval is a rough estimate of a loan amount and interest rate that a lender gives to a homebuyer. This information provides homebuyers with a fairly accurate idea of how much they can afford to purchase. To get a mortgage pre-approval, you, the borrower, must provide the mortgage lender with details about your finances. This information includes your income, assets, debt, and how much money you have for a down payment. The lender will ask your permission to check your credit score. Once you have provided the necessary information, it will take a few days for the lender to verify the information and issue you a pre-approval letter. The letter will state how much you are approved to borrow, the interest rate, and how long the approval is good for. A mortgage pre-qualification is similar, but it is based on information you state, rather than any documents you provide the lender.
| Pre-Qualification | Pre-Approval |
|---|---|
| Borrower’s financial information is stated; no documents required. | Limited financial information must be provided. |
| Credit score may be a “soft pull” or not verified by the lender. | Lender will do a “hard pull” of the borrower’s credit score. |
| Provides a rough estimate of qualifying loan amount. | Provides a specific loan amount and interest rate. |
| Good for planning ahead and budgeting for a home purchase. | Good for homebuyers who are ready to start house-hunting and making offers. |
- Proof of income. Paystubs, W-2s, tax returns, and (1099s, if you work for yourself) are examples of this.
- Proof of assets. Recent bank statements for your checking and savings accounts will be required, and some lenders may also request to see statements from your retirement and investment accounts.
- Good credit. Before lending money to you in the form of a mortgage, all lenders will want to make sure you are creditworthy. Creditors and lenders use credit scoring as a tool to help decide who gets credit or a loan. The FICO credit scores, which vary from 350 (high risk) to 850 (low risk), are the most commonly used credit scores. It will be simpler to get pre-approved and you’ll probably be granted a lower interest rate if your credit score is higher.
- Employment verification. Your paystubs, if you have an employer, will demonstrate that you are paid. If you work for yourself, you must submit both your personal and business tax returns, as well as profit-and-loss statements.
- Drivers license. When completing a formal loan application and for pre-approval, you will need to provide a government-issued photo ID.
- Social security number. The lender also needs this in order to verify your identity, credit score, and other details.