Getting preapproved for a mortgage is a critical step in the homebuying process, and it’s faster than you might think. While the exact timeline depends on your lender and how prepared you are, most preapprovals are completed within a few days. In some cases, you could even receive preapproval on the same day you apply.

Here’s a breakdown of the process and factors that influence how long it takes.

1. Initial Application: 15–30 minutes

• Filling out the application is quick, especially if you’ve already gathered your financial documents. You’ll provide information about your income, debts, credit, and assets.

2. Document Submission: A few hours to a couple of days

• Once you submit your application, the lender will ask for supporting documents, such as pay stubs, tax returns, and bank statements. If you have these documents ready, this step can be completed quickly.

3. Credit Check: A few minutes to a few hours

• The lender will run a hard inquiry on your credit report to assess your credit score and history. This step is usually automated and completed quickly.

4. Lender Review and Decision: 1–3 business days

• The lender evaluates your application and documents to determine your eligibility. In some cases, if the lender’s system is automated, this process can take just a few hours. However, manual reviews may take longer, especially if there are questions about your application.

5. Preapproval Letter Issuance: Same day to 1 business day

• Once approved, the lender issues a preapproval letter, which you can use to show sellers and agents that you’re a serious buyer.

Total Time: 1 to 3 days on average, though same-day preapprovals are possible with online lenders or if all documents are ready.

1. Preparation

• Having all required documents ready (e.g., pay stubs, tax returns, bank statements) can significantly speed up the process. Delays often occur when borrowers need time to gather paperwork.

2. Lender’s Process

• Some lenders use automated systems that can provide instant preapproval decisions, while others rely on manual reviews, which can take longer.

3. Complex Financial Situations

• If you’re self-employed, have variable income, or a high debt-to-income (DTI) ratio, the lender may need extra time to review your application.

4. Credit Issues

• If your credit report has discrepancies or issues, such as a low credit score or recent late payments, the lender may take additional time to evaluate your eligibility.

5. Volume of Applications

• During busy times (e.g., spring and summer, when housing markets are active), lenders may take longer to process applications due to higher demand.

1. Organize Your Documents in Advance

• Gather all necessary paperwork, such as proof of income, bank statements, and tax returns, before applying.

2. Check Your Credit Report

• Review your credit report for errors or discrepancies and address them before applying for preapproval.

3. Choose a Responsive Lender

• Look for lenders known for quick turnarounds or those offering online applications with automated systems.

4. Be Honest and Accurate

• Provide complete and accurate information in your application to avoid delays caused by follow-up questions or discrepancies.

It’s a good idea to get preapproved early in your homebuying journey—before you start shopping for homes. Preapproval letters are typically valid for 60–90 days, giving you ample time to find a property while ensuring your finances are in order.

Getting preapproved for a loan is a relatively quick process, often completed within a few days if you’re well-prepared. By understanding the timeline and factors involved, you can streamline the process and position yourself as a competitive buyer in today’s housing market.

The sooner you get preapproved, the sooner you can confidently begin your search for your dream home!