Getting pre-approved for a mortgage can be a big step towards homeownership. It's a way to know exactly how much money a lender is willing to loan you, giving you the confidence to start house hunting. But how long does it take to get pre-approved?
Getting pre-approved on average happens within 7-10 days. However, to shorten the timeline, there are a few things that you can do:
Gather all required documents prior to going to a lender
Check your credit report for any errors or issues. It's always a good idea to work on improving your score before applying.
Collect proof of employment
Organize your list of assets
Well, it depends on a few factors... we know, a typical cop-out answer. Keep reading to shorten the timeframe!
First, you'll need to gather all the documents that the lender requires. This can take some time, so it's a good idea to start early. The documents typically include things like W-2 forms, pay stubs, tax returns, bank statements, and proof of assets. If you want to learn more about what documents are needed for pre-approval, check out our recent article on the step-by-step guide to getting pre-approved.
Once you've gathered all the necessary documents, you'll need to submit them to the lender. The lender will review your credit report to determine your creditworthiness. Be sure to check your credit report for any errors and have them corrected before you apply for a mortgage. This can take some time, so it's a good idea to start early.
Your employment status can also affect the timeline for getting pre-approved. Lenders will want to verify your employment and income, so be prepared to provide additional documentation if needed.
Assuming everything goes smoothly, the pre-approval process can take anywhere from a few days to a couple of weeks. Traditional lenders typically take longer, with some taking up to 10 business days. However, there are new emerging companies that use technology to streamline the process and offer faster pre-approvals. These companies can provide pre-approvals within minutes. We'll dive into these companies - the benefits and the risks in a future post.
Getting pre-approved for a mortgage can be a complex process, but it's an important step towards homeownership. By understanding what documents are needed for pre-approval and the difference between pre-approval and pre-qualification, you can make the process smoother and faster. Don't hesitate to reach out to your lender for guidance and support along the way!
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