How Long Does It Take To Get Approved for a Mortgage?

So you’re ready to buy a home? As you research lenders, you're probably wondering how long it takes to get approved for a mortgage

Depending on the lender, you can receive a mortgage decision with a quick turnaround time. (For example, at Skyla, it's a same-day turnaround for our underwriters to reach a decision -  sometimes 48 hours on a busy day!)  But not all lenders are the same. It may take other lenders longer to reach a decision - sometimes as long as 30 days. But the timing can depend on a few factors and is different for everyone. 

But don't you worry! We'll review the steps you'll take before the lender reaches a final decision. I'll also share the documents you'll need to help speed up the process. As a bonus, I'll share some "do's and don'ts" when getting a mortgage to avoid prolonging the decision process. 

So, whether you're ready to start the mortgage application process or you’ve already hit submit for your mortgage application and you’re waiting for a response, keep reading - this article has the information you need! 

here’s a quick look at what we’ll cover

what’s the mortgage approval process?

When getting a mortgage, there are quite a few steps, but the following are the most important steps for you when receiving a mortgage from your lender:  

• Getting pre-approved when starting your search
• Receiving the final approval 
  
  

GETTING PRE-APPROVED

Typical timeframe: 1 - 2 days.  

When you're planning to finance your new home, it's always best to be pre-approved first.  

Being pre-approved for a mortgage means a lender gives you an estimate of how much they’re willing to lend you for a mortgage based on a preliminary assessment of your financial situation and can give you a better idea of what kind of home you can afford and help you move forward in the home-buying process.

The great thing about being pre-approved for a mortgage is:

• You have a better idea of what you can afford.
• If you find a home that’s within your budget, being pre-approved will make the offer process go more smoothly and quickly. 
• Some sellers may be more willing to accept an offer from a pre-approved buyer because it shows that you’re serious about buying and have the financing in place.
  

A pre-approval can give you a better idea of what kind of home you can afford and help you move forward in the home-buying process. Please note that being pre-approved does not guarantee your loan because It's not an official approval. But it is more involved than being [tooltip4]. 

Having all supporting documents plays a role in how fast you can receive a decision from the lender.  

Here's a general list of information the lender may ask for. 

• Employment information: Employer's name, position/title, salary, etc. 
• Income: W2s, pension, social security, etc. 
• Debts: credit cards, auto loan, liens, current mortgage, etc.
• Assets: Bank account statements (checking and savings), investments (stocks, bonds, retirement accounts), etc.   
• Credit history: Collections, foreclosures, delinquencies, etc. 
• Property information: If you have the new home information, this would be helpful to the lender. Address, price, property size, homeowners' association (HOA), type of home (single family, condo, etc.).  

You’ll need to have good credit and enough money saved up to cover other costs like a down payment. Psst… usually 20% of the purchase price is asked for the down payment but there are ways around getting a mortgage without making a down payment. Here’s how>. 

When you're pre-approved, the lender will provide a pre-approval letter which is valid for 60 days. 

When you find your suitable home and you're ready to put in an offer, show the seller your pre-approval letter which is proof that you're able to afford the home. If you're pre-approved and wait too long (after the 60-day period), you’ll need to get pre-approved again - meaning you may have to reapply.

complete the mortgage approval process 

Typical timeframe: 1 - 2 days  

Now that you've been pre-approved by your lender, you’ve found the home you’re interested in, and had your offer accepted by the seller, it’s time to complete the approval process.

You've done a good portion of the application process in the pre-approval stage, but a few more steps need to be done on the back end with the  [tooltip2].

Some lenders may take 1 - 2- days, others may take as long as a few months to give their final approval. The delay could be due to the borrower's financial situation, or just the business of the market and the lender.

why is it taking so long for my mortgage to be approved?   

When underwriters review mortgage applications, they review them with a fine-tooth comb. Not literally, but they do look at each detail. They need to confirm and assess your creditworthiness so, if you have issues in your credit history, it may take longer to reach a decision. 

When your application is being processed, there are still certain things you need to keep in mind that can greatly affect the approval status of your mortgage application, especially as you get closer to the time of your loan closing. 

Here’s a look at some “ Do’s and Don’ts” we’ve shared with our members and would be a good help for you in your mortgage approval process. 

Please DON’T:

• Quit your job or change jobs unless it is in the same line of work and for equal or more income. Contact the mortgage loan officer immediately if this should occur.
• Allow anyone, other than the lender you’re applying through, to make a credit inquiry that involves obtaining a new credit report.
• Close or change your existing bank accounts, or transfer funds from one institution to another.
• Co-sign a new loan for anyone.
• Finance the purchase of an automobile or acquire any new loans or credit cards.
• Purchase any other real estate or become a joint borrower on anyone else’s mortgage loan.
• Charge any major purchases (more than $500) on your credit cards.
• Begin any home improvement projects or repairs that are not being done as a condition of your loan approval (if your mortgage is a refinance).
  
  

Please DO:

• Keep all existing loans and credit card accounts current. Make all payments on or before the due date (even if the balance is being paid off via the new mortgage). If an issue occurs that prevents you from doing this, please notify the lender immediately.
• Retain copies of all paycheck stubs, as well as any billing statements for loans/accounts that are being paid in full via the proceeds of your mortgage.

what do i need to apply for a mortgage at skyla?

If you’re looking to apply for a mortgage with Skyla, here’s what we require. 

• Established credit (A good credit score will increase your chances of getting a low-interest rate)
• Down payment (or [tooltip3] if you're refinancing)
• Proof of income (30 days of your most recent paystubs)
• W2s (2 years of your most recent W2s )
• 60 days of bank statements if you're coming from another financial institution. 
• Two most recent years of tax returns if you’re self-employed 
• Additional verification information (auto loan, credit card, most recent retirement account statement) 

If you’re interested in getting a mortgage from Skyla, you can complete a mortgage application within 5 or 10 minutes.  Once you submit and provide all the necessary documents, you can expect a decision within the same day or 48 hours. 

ready to get your mortgage approved?  

When you’re ready to get a mortgage it's always best to be pre-approved for the mortgage first. Getting pre-approved can speed up the process in your home buying process and can also help persuade the seller to accept your offer for the home. 

 As mentioned earlier, the timeframe for getting pre-approved and approved for a mortgage is not the same for every lender. It typically takes 1-2 days to reach a decision for each step unless there’s additional information needed and or there are financial complications on the borrower's credit profile. 

If you need help understanding your credit and need help improving your credit score, I have the article for you here >

To ensure you’re not missing anything when submitting your mortgage application, make a checklist and use the list of supporting documents above as your guide.  

If you're concerned about your credit affecting your chance of getting approved or receiving a favorable interest rate for a mortgage, here's what you need to know about your credit score and how to improve it. 

If you have any questions, our Mortgage Loan Officers are here for you. You can send an email, give us a call at 704.375.0183 x 1525, or visit any of our branches.