How Long Does It Take To Get Mortgage Loan Approval?

Getting mortgage loan approval is an important step in the home buying process But how long does it actually take to get approved for a mortgage loan? The answer depends on several factors

In general the mortgage approval process takes 30-60 days on average. However, it can be shorter or longer depending on your specific situation. Here’s an overview of the key factors that determine your mortgage approval timeline

Mortgage Application Completeness

One of the biggest factors in how long it takes to get approved is how quickly you submit all required documents for your mortgage application. Lenders need certain paperwork like bank statements, tax returns, employment verification, and more.

The more complete your application is upfront, the faster underwriters can review it and issue an approval. If parts of your application are missing, it slows down the process. Strive to submit a full application all at once to expedite approval.

Your Financial Profile

Applicants with strong credit scores, low debt, and solid assets tend to get approved more quickly. Underwriters have less to scrutinize and verify.

Borrowers with weaker credit or financial red flags take longer to review. Issues like bankruptcy or foreclosure can lengthen the approval timeline. Be sure your credit is in good shape before applying.

Loan Program and Down Payment

Government-backed loans like FHA and VA mortgages generally require more upfront paperwork and have stricter approval criteria. These loans often take a bit longer to get approved compared to conventional mortgages.

The size of your down payment also plays a role. Low down payment programs like FHA (3.5% down) need extra underwriting diligence, extending timelines. Larger down payments are viewed more favorably by lenders.

Mortgage Lender Processing Times

Mortgage lenders vary widely in their underwriting capacity and volume. Large lenders like Quicken Loans and loanDepot have massive operations, with the ability to process many loans simultaneously in less time.

Small lenders and credit unions tend to be slower since they underwrite in-house and have less staff. Ask lenders about their average processing times when shopping for rates.

Time of Year

Mortgage approvals generally take longer between spring and summer, the peak home buying season. Lenders get flooded with applications and underwriting bottlenecks occur.

Applying during the fall or winter months often expedites the process when lender volume is lower. Avoid applying in June if possible!

Use a Mortgage Broker

Working with a mortgage broker can shave days or even weeks off the approval timeline in some cases. Brokers have relationships with multiple lenders and can quickly identify the ones with the fastest underwriting. This gets your application in front of the right eyes sooner.

How to Check Approval Status

The wait for mortgage approval can feel long and anxious. While you can’t rush underwriters, you can check in periodically on the status.

Touch base with your loan officer for updates. Ask if any outstanding documents are needed to get you cleared to close. This proactive communication can prevent delays.

Most lenders also provide online loan portals where borrowers can monitor the approval progress. Key stages like “underwriter review” and “clear to close” are updated in real time. Checking your status online lets you stay informed.

Preapproval vs Final Approval

It’s important to distinguish between preapproval and final loan approval. Preapproval typically takes only a few days and gives an initial thumbs up. But you still have to complete the full application for a final green light.

Many buyers confuse the two or think preapproval means they are officially approved. Be sure to submit a complete application for the formal approval needed to proceed.

Approval Wait By Mortgage Type

To give you a better idea of typical approval timelines, here is an overview of wait times by mortgage loan type:

Conventional mortgages – 30 to 45 days on average if you have good credit. Can be as fast as 2 weeks for strong applicants.

FHA loans – 45 to 60 days on average due to extra paperwork and appraisal requirements. Often longer for lower credit borrowers.

VA loans – Usually 30 to 45 days, but can be faster with a skilled lender familiar with VA guidelines. Less financial documentation is required.

USDA loans – 45 to 60 days on average. Processing and eligibility verification takes more time than conventional loans.

Jumbo mortgages – 30 to 60 days on average. Higher loan amounts and balances require more scrutiny. Strong finances expedite approval.

Factors That Can Delay Approval

While the typical approval timeline is 30-60 days, there are circumstances that can prolong the mortgage process. Delays are frustrating but common hurdles include:

• Outstanding documents or information missing from your application

• Disputes or inaccuracies found in your credit report

• Income verification issues if self-employed or sources are complex

• Appraisal problems like low value or delays getting inspection report

• Title searches revealing liens, judgments, or other title defects

• Change in employment or financial status during underwriting

• Difficulty providing adequate home insurance coverage

• Borrower availability to answer underwriter questions

• Heavy lender loan volume and understaffing

How to Speed Up the Approval Process

You can’t always control unexpected delays. But there are steps you can take upfront to get approved faster:

• Get preapproved – Being preapproved gives you a headstart with initial vetting

• Watch your credit – Keep credit card balances low and don’t apply for new credit before applying

• Gather documents – Income, tax, bank statements should be ready to submit

• Communicate – Be responsive to lenders requests to avoid lag time

• Shop lenders – Compare average approval times when choosing your lender

• Lock your rate – This shows commitment and can motivate quicker underwriting

• Pay for an appraisal rush – Pay extra for a faster appraisal if needed

• Follow up – Check loan portal and call loan officer for status updates

The Waiting Game

Waiting for mortgage approval when you are eager to buy can be excruciating, especially if unexpected delays crop up. But take heart that the finish line is close once underwriting is underway. Maintain good communication with your loan officer and be patient.

Before you know it, your hard work will pay off with those final approval docs and you’ll be picking out paint colors for your new home sweet home!