December 5, 2023
Getting approved for a home loan can take a few weeks or months, depending on the borrower and the circumstances surrounding the loan.
Receiving the FHA loan funds may take between four weeks and 90 days from start to finish, and there are milestones along the way, such as the appraisal process, which must be passed before loan funds can be released.
Here is what you need to know about the time it takes to be approved for a mortgage.
A Process With Multiple Stages
Your FHA loan has more than one milestone to pass before you reach closing day and accept your keys. There’s the pre-approval stage, the appraisal, any required compliance inspections (where applicable) and getting the loan itself approved.
Did you know your lender may check your credit more than once when you apply for a home loan? Expect this as a standard part of the process and don’t do anything to alter your current credit once the home loan process begins.
Realtor.com offers some advice about navigating the house-hunting process. House hunters should expect home loans to have a busy season, expect longer waiting times in the good weather months when everyone seems to be house shopping.
Realtor.com also notes the importance of managing your finances ahead of your loan application.
“If the lender uncovers any financial issues in your record (e.g., a low credit score, previous foreclosure, or overwhelming debt), getting a mortgage can become a slower and more complicated process.”
What Complicates Your Home Loan
There is good advice online about things that can make it harder for your lender to justify appproviing your loan. Consider the advice of Credit.com, which notes, “Outstanding debt with the Internal Revenue Service can elongate the process, so be up-front with your lender about these potential problems.”
Consider managing such issues long before applying for a large line of credit like an FHA mortgage.
Be Ready To Apply For Your Loan When The Time Comes
Being ready to apply means getting your financial documentation lined up ahead of time. When applying for a loan or getting pre-approved for one, you will need the following documents:
- Unexpired Driver’s license or state-issued ID card.
- Social Security card or proof of SSN
- Most recent two bank statements
- Most recent two pay stubs
- Last two years of tax records (more may be needed if you are self-employed)
- Bank account information (routing number and account numbers may be required)
Home Loan Pre-Approval
When you get preapproved for a loan, you may be given a pre-approval letter to use when house hunting. Such letters are not open-ended and may expire within 60 to 90 days of issuance. Know how long the period lasts and when it expires for best results when negotiating with a seller.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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