How Long Does it Take to Get a Mortgage Pre-Approval?

If you’re a first-time home buyer, you may be wondering about the time commitment that lies ahead. While the length of every home search is different, the first step- getting a pre-approval- is about the same. It takes as little as an hour to one day to get a mortgage pre-approval! There are three major steps in the process: collecting documents, filling out the application, and awaiting review by a mortgage banker. No two situations are exactly the same, so for each step, we’ve laid out expected timeframes and the variables that can affect them. 

Documents: Two, Two & Two      

After you have connected with a mortgage banker and received a link to fill out your pre-approval application, the first step is to gather your most recent, consecutive documents. For many people, these documents are a few clicks away and usually can be collected in minutes. 

• Two pay stubs 
• Two W-2s 
• Two bank statements 

If your employer utilizes an HR platform or employee portal, you can often log on and download your pay stubs and W-2s from there. Otherwise, you should have received physical copies of these documents as they became available and have them on hand. If you can’t download or locate these documents, simply request them from your employer! 

Similarly, most banks offer online banking access, from which you can easily download statements. Alternatively, receiving your statements in person is just a 5-minute exchange with a teller at the bank. All in all, collecting documents should take a maximum of 1-2 days. 

What If I’m Self-Employed?

If you do not receive pay stubs or W-2s, you will need to provide 2 years’ proof of income as stated on your federal tax returns. Many people keep their tax returns in a safe place, making this an instant step. If you don’t have physical copies, the IRS offers a way to get your tax records and transcripts online. However, there are instances in which you will need to file a request to receive physical copies by mail or reach out to your accountant if you have one. If this is the case, the time it takes to get a mortgage pre-approval could be extended by several days. 

Filling Out the Application

For a lot of first-time buyers, filling out a mortgage application may sound arduous and potentially confusing. But if you’ve completed all the steps in the previous section and are ready to submit these documents online, the hardest work is already behind you. In addition to questions about your personal information (name, email, etc.) that you have answered a million times before, the mortgage pre-approval application asks simple questions. For example, how much you want to put down on a home and whether you have an address in mind. If you don’t know the exact answers, that’s perfectly okay. Estimations of price range, down payment, and monthly payment are to be expected until your mortgage banker reviews the application and discusses financing with you. That said, it takes about 15 minutes to fill out a pre-approval application. 

Review Period

Now it’s time for your pre-approval to be issued! Your mortgage banker may contact you with questions or clarifications, and there is a possibility that they may request additional documents. 

Additional documents are typically required in cases where a borrower has additional or non-traditional income or needs to supply investment account statements to supplement bank statements. Depending on the availability of these documents, it could be an extra few minutes.  

Once everything is in order, all it takes is an email from your mortgage banker, completing the last step within the same day, and you are ready to start shopping for a home. To learn more about how long it takes to get a mortgage pre-approval for your unique scenario, fill out the contact form below and talk to a mortgage banker!