How Long Does a Mortgage Approval Take?
Getting approved for a mortgage, even just being preapproved, doesn’t happen overnight. Lenders need time to process paperwork and you need time to be approved. Below is BBMC’s estimated timeline from prequalification letter to final loan approval.
Step 1: Get a prequalification letter. Many sellers want a buyer to have this letter before they will even consider an offer. Don’t worry. Pre-qualification letters are relatively quick and easy to get. Ask you BBMC loan specialist for a letter – it will give sellers a rough estimate of the loan amount you may qualify for based on your self-reports of income, assets, debts, and your down payment.
Time: 1 to 3 days
Step 2: Get preapproved. During this step of the mortgage process, BBMC will verify everything you have told us. We will need information like your Social Security number; proof of income, assets, and employment; and records of any other currents debts you have.
Time: 1 week
to several months – If you have a stable situation, with good employment and little to no debt, preapproval can take as little as one week. If you have a more complicated situation (self-employment, past bankruptcy, a pending court case, etc.), BBMC will need additional documents for preapproval. This can extend the process several weeks or even months.
Step 3: Final loan approval. Once you have preapproval and have made an offer on a home, BBMC will need to conduct an appraisal. This is verifies that the home you are trying to purchase is priced at a fair market value.
Time: 3 days to 2 or more weeks – Scheduling a visit with a licensed appraiser is often what takes the most time during this step. Once the appraiser completes the visit, an approval or rejection usually comes through within a day or two.
Once you’ve received an approval, it’s time to close on your dream home!Source: mybbmc.com