Buying a home is a process. One that can take a long time.
And part of that process (for most of us anyway) is to get a mortgage. One of the first steps in getting a mortgage is to get pre approval from a lender.
One of the things you might be wondering about is how long does mortgage pre-approval take? You’ll find the answer to this question and more below.
You’ll also find information about how long a mortgage pre-approval lasts, the factors that affect the length of your mortgage pre-approval, as well as some tips on how to get pre-approved.
What Is a Mortgage Pre-Approval?
The entire process of buying a home takes about 6 months or so, on average. And one of the first things people do in that process is seek out a mortgage.
When doing so, a lot of people will ask a lender for a pre-approval. One of the parts of the process of purchasing a house is getting a mortgage pre-approval.
Getting pre-approved is not a guarantee of a mortgage. It just means that a lender has looked at your finances and determined how much you can borrow, what your interest rate is and what monthly payments you can afford.
How Long Does Mortgage Pre Approval Take?
Pre approvals don’t take much time at all. In fact, once you give your lender all the documents they ask for, you can get your pre approval on the same day.
Exactly how long it will take will depend on two things. Your situation as well as the lender you go to.
Some of the factors that can impact how long this whole process can take are:
- How long it takes you to gather necessary documents
- Whether there are mistakes on your credit that need to be fixed
- Your employment status
- Unusual circumstances in your assets
How Long Does A Mortgage Pre-approval Last?
Pre approval letters don’t last forever. In most cases, you can expect them to last between 60 to 90 days. The exact expiration date for your mortgage pre-approval must be indicated on your mortgage pre-approval letter.
There are certain factors that can affect the length of how long your mortgage pre-approval will last. You can learn more about this in this article.
Pre Approval vs Pre Qualification
Getting pre-approved is different from being pre-qualified. With a pre-qualification, a mortgage lender will determine how financially stable you are. Based on this assessment, they’ll determine if you can qualify for a mortgage.
Pre-qualification does not require an application. There is also no credit check or official review of your financial situation. It also does not carry as much weight to it as a pre-approval does in terms of making you a more attractive home buyer.
How To Get Your Pre-approved?
To get a pre-approval, your potential lender will take a look at certain things about you such as:
- Your credit history
- Your credit-score
- Debt-to-income ratio
- Employment history
- Income
- Assets and liabilities
These are key factors that will get your mortgage pre-approved.