How long does it take to get preapproved for a mortgage?
Quick insights
- Mortgage preapprovals can be completed within 1 to 3 business days, but some loan providers may offer same-day turnaround.
- Submitting complete, accurate financial documentation can substantially speed up the preapproval process.
- Preapproval letters usually remain valid for 60 to 90 days before requiring an update.
Before you start touring homes or open another real estate app and start scrolling through listings, one move can set you apart from other homebuyers: getting preapproved for a mortgage. It’s more than just a formality; preapproval shows sellers that your offer is serious and financially prepared. But how long does it actually take to get preapproved?
Whether you’re trying to move quickly into a hot real estate market or just planning ahead, here’s what to know about the preapproval timeline.
How quickly can you get a mortgage preapproval letter?
While some mortgage lenders can issue a preapproval in minutes, other loan providers may take a few business days. If you’re ready for the house hunting process, obtaining a preapproval letter for a mortgage is a crucial first step. It gives you a clear idea of your budget and signals to sellers that you’re a serious, qualified homebuyer.
The exact timing depends on the lender and the depth of review required. Here’s what a typical timeline can look like:
Preapproval submission (Same day – 1 business day)
Pick a loan provider and complete its mortgage preapproval application. To get a verified preapproval letter, you will often need to upload specific information, such as your income, assets, employment history, debt obligations and permission for a credit check. Many mortgage lenders, like Chase, now offer the mortgage preapproval process online, and it can often be completed within an hour.
Credit check and financial assessment (1-3 business days)
After you submit your preapproval application, the loan provider will run a hard credit inquiry to evaluate your credit score, debt-to-income ratio and overall creditworthiness. The lender will also assess your income documents like your W-2s, pay stubs from your employer or tax returns, and verify your employment. For most financial situations, the financial assessment can take 1-2 business days, while more complex cases may take longer.
Preapproval letter issuance (Same day – 3 business days)
Once the loan provider finishes their review of your credit and financial documents, they may issue a formal mortgage preapproval letter.
The preapproval letter typically includes the following:
- Loan amount you’re approved for
- Estimated mortgage interest rate (subject to change until you lock your interest rate)
- Loan type (conventional loan, FHA loan, VA loan, etc.)
- Loan term (30-year fixed mortgage, 15-year fixed-rate mortgage)
- Down payment amount or percentage used for qualification
- Expiration date of the preapproval
- The mortgage lender’s contact information in case sellers or real estate agents want to verify
You can usually download the preapproval letter. Some mortgage lenders may offer the option to print it on demand or update it for different price points as you start your house hunting journey.
Factors that affect preapproval speed
While the preapproval process can often be completed within a few days, there are various factors that can impact how quickly you receive your preapproval letter. Some of these factors are within your control, such as how accurately and thoroughly you fill out your application. However, there are elements that depend solely on the loan provider or the broader housing market.
- Lender efficiency: Not all loan providers operate on the same schedule. Some may use automated underwriting systems and can issue a preapproval letter in minutes, while other providers rely on manual reviews that can take more time. If you are on a tight timeline, ask your lender upfront for an average turnaround time.
- Accuracy of the application: Mistakes, missing documents or vague employment and income details can slow down the mortgage preapproval process. Make sure you have provided all required documentation and double-check your entries before you hit the submit button.
- Market conditions: In a hot housing market, mortgage lenders may be overwhelmed with loan applications, which could lead to delays in processing. During slower periods, turnaround times could be faster.
- Complex financial situations: Are you self-employed, a freelancer or earning from multiple sources? You might want to expect a more in-depth verification process. Loan providers may ask for additional documentation like business tax returns, profit-and-loss statements or bank account details. This can add additional time to the process.
How long does a mortgage preapproval last?
A mortgage preapproval letter typically lasts 60 to 90 days, though the exact duration can vary depending on the loan provider. Mortgage lenders put an expiration date on preapprovals because your financial situation and market conditions can change quickly. Income, credit score and debt levels are all time-sensitive factors that can affect loan eligibility. If your preapproval expires, you usually have to reapply, which can mean resubmitting documents and authorizing a new credit check.
In summary
Getting preapproved for a home loan is a powerful first step that can usually be completed in just a few days. While timelines may vary by lender, being prepared with accurate financial documents can help the lender. Working with a Home Lending Advisor may help speed up the homebuying process wherever you are in your journey. With a mortgage preapproval letter in hand, however, you will be ready to shop for homes with more confidence, knowing exactly what you can afford.
