How Long Does It Take To Get Home Loan Approval? A Complete Breakdown

Getting approved for a home loan can be an exciting yet stressful process, especially for first-time homebuyers You’ve found your dream home, your offer was accepted, and now you’re eager to seal the deal However, before you can move into your new place, your lender needs to approve you for a mortgage. This process involves submitting an application, gathering documentation, undergoing underwriting, and receiving final loan approval.

So how long does it actually take to get approved for a home loan? The timeline can vary quite a bit based on your financial situation, chosen lender, type of mortgage, and other factors. Generally, you can expect the approval process to take anywhere from 30 to 60 days from start to finish. However, it’s not unheard of for some loans to get approved in as little as two weeks or drag on for three months or longer.

Let’s break down the typical stages of the home loan approval process and how long each step takes

Pre-Approval

Before even house hunting, it’s wise to get pre-approved for a mortgage. Pre-approval provides a pre-qualification letter from a lender stating how much you’re eligible to borrow. Going through pre-approval upfront shows sellers you’re a serious buyer and can make your offer more attractive.

The pre-approval process may take anywhere from a few days to a couple weeks. You’ll need to submit financial documents like bank statements, tax returns, and pay stubs so the lender can evaluate your credit, income, expenses, and assets. Once the lender reviews your information, they will give you a pre-approval letter with an estimated loan amount.

Mortgage Application

After your offer is accepted on a home, it’s time to formally apply for a mortgage loan. Submitting a complete application with all required documents sets the official approval process in motion.

You can expect the application stage to take 1-2 weeks. The lender will request paperwork to verify your financial background, like W-2s, paycheck stubs, tax returns, and bank statements. Be sure to turn in all forms and paperwork promptly to avoid delays.

Underwriting and Processing

The underwriting process is when the lending institution thoroughly examines your application to determine if you qualify for the mortgage loan. Underwriters analyze your credit, income sources, assets, debts, and other factors to decide if you’re eligible.

Underwriting often takes anywhere from 2-6 weeks. The more complex your financial situation, the longer underwriting may take. Provide prompt clarification or additional documents if the lender requests more information.

Final Approval

The last step is receiving final loan approval from the lender’s underwriting team. If you pass underwriting, the lender will issue a clear-to-close notice indicating the final loan amount and terms.

Final approval can take anywhere from a few days to a couple weeks after finishing underwriting. Once approved, you can proceed to the closing process and prepare to move into your soon-to-be home!

Timeline Summary

Here’s a quick summary of the typical timeframes for each step:

• Pre-Approval: 1-2 weeks
• Mortgage Application: 1-2 weeks
• Underwriting: 2-6 weeks
• Final Approval: 1-2 weeks
• Total Timeline: Approximately 30-60 days

However, this is just a general guideline. Numerous factors can result in a shorter or longer approval process, including:

• Your financial background – Strong credit, low debt, and high income speed things up. Weak areas mean more scrutiny.
• Type of mortgage – Government-backed loans like FHA and VA may close faster than conventional loans.
• Time of the year – Winter months tend to be slower due to holidays. Spring/summer see quicker turnarounds.
• Lender workload – A flooded lender slows timeframes versus a smaller bank.
• Ease of verifying docs – Incomplete or messy paperwork causes delays.
• Appraisal timeline – Waiting on appraisal results can postpone underwriting.
• Any red flags – Issues discovered during underwriting require extra processing time.
• Your responsiveness – Quickly providing requested documents prevents stalls.

While every homebuyer hopes for a speedy approval, it’s important to be realistic. Aim for 30-60 days, but don’t be shocked if it takes 90 days or more when working with a busy lender or if you have complex finances. The key is staying organized, promptly submitting a complete application, and keeping an open line of communication with your loan officer.

Tips for a Faster Home Loan Approval

Looking to help accelerate the approval timeline for your home purchase? Here are some useful tips:

• Get pre-approved early – Being pre-approved before even making an offer can shave off weeks.

• Organize financial docs – Have pay stubs, tax returns, and account statements ready to go.

• Minimize new credit – Don’t open new cards or apply for loans during the process.

• Pay down balances – Having lower credit card balances helps your debt-to-income ratio.

• Explain red flags upfront – Be ready to clarify any credit dings or unusual deposits.

• Provide requested docs ASAP – Submit any additional needed paperwork right away.

• Avoid major purchases – Hold off buying cars, furniture, etc. until after closing.

• Use a mortgage broker – Brokers can sometimes expedite timeframes by juggling lender workloads.

• Be flexible on closing date – Giving some wiggle room on your closing date prevents delays.

• Plan for the long haul – Hope for the best but budget for up to 90 days to be safe.

While getting approved for a home loan in two weeks would be ideal, it’s not typical during busy home buying seasons. Build some buffer room into your expectations. With good preparation and organization, you can hopefully keep your approval timeline to around 30-45 days.

What to Do While Waiting for Approval

Waiting weeks for your home loan approval to finalize can feel frustrating when you’re so close to getting the keys. But look at it as bonus time to complete other key steps to prep for closing and move-in day:

• Shop home insurance – Lock in a homeowners insurance policy well before closing.

• Research utility companies – Line up your electric, gas, water, trash services.

• Get inspections done – Use any delays as a chance to get inspections out of the way.

• Apply for HOA – Submit documents needed to join homeowners association.

• Update licenses – Change your driver’s license address to your new home.

• Change accounts – Notify banks, subscriptions services, etc. about your upcoming move.

• Schedule movers – Reserve a moving company for your planned move-in date.

• Deep clean your old place – Clean now before packing to make move-out simpler.

Taking care of these to-do’s ensures you can smoothly transition into your new place as soon as approval comes through. Don’t let waiting discourage you. Focus on checklists that get you closer to move-in day while keeping in touch with your lender to get updates on your approval status.

Closing Thoughts

Obtaining mortgage approval is rarely a quick and seamless process, so avoid frustration by giving yourself plenty of buffer time. While exceptions occur, follow a 30-60 day timeline from start to close as a sensible goal. Staying organized, promptly submitting a complete application, and keeping an open line of communication with your loan officer will help expedite approval. With good preparation, persistence, and a little patience, you’ll get the green light to close on your new home before you know it!