It can take anywhere from a few days to a few weeks to receive your pre-approval letter. On average, it usually takes less than 10 days. If you have everything in order and your credit is good, you can get it in 1 or 2 days. How long does this process usually take? It may take a few days to a few weeks for your subscription to be authorized to close.
This report will include the appraiser's opinion on the fair market value of the home. This entire process usually takes a week or less. According to the most recent data from Ellie Mae, conventional loans take an average of 51 days to close: 49 days on average for a purchase transaction and 51 days for a refinance. As we mentioned, the subscription portion could take anywhere from a few days to a few weeks.
Federal law requires a minimum of three days between loan approval and closing of your new mortgage. You could be conditionally approved for a week or two before closing. In general, the faster you comply with your lender's request for paperwork and supporting documentation, the faster your file will be processed. With some lenders that have an automated pre-approval process, you can get pre-approved in just a few seconds online.
Most of the time, lenders accept the valuation of a home by the appraiser as is and will issue a “final approval” stating that the loan is approved subject to certain closing conditions. In many cases, after you submit your application, the lender will be able to offer “preliminary approval.” Underwriting is a crucial part of the mortgage approval process, so it's best to do everything possible to avoid delays. As the next step in the mortgage approval process, your mortgage lender will schedule a home appraisal. Getting pre-approved means that the lender approves all aspects of your home loan in addition to the property.
When your home loan is submitted to a bank for approval, there are approximately seven separate steps in the loan application process. If all goes well, your lender may approve your loan or give you a conditional approval. Mortgage origination is the first step in buying a home (or refinancing a mortgage), when you apply for prior approval and then complete a formal application. However, the actual mortgage approval process can quickly weaken the mood and is often quite stressful for anxious buyers.
After you issue your preliminary approval, your mortgage lender will ask you to provide documentation to document the information you have shared as part of your application. Conditional mortgage approval occurs after the initial review and is issued by the insurer when there are questions or requests for additional information or documentation. The best way to think about starting the home loan process is to understand how long your pre-approval lasts. At this time, you may receive a pre-approval letter from the lender stating how much they are willing to lend you based on your financial profile.
Mortgage insurers will generally work on your approval while the home is being appraised.