How long does it take to get pre-approved for a home loan?
I talked over the phone this morning with a loan officer with a bank and I faxed him all the paperwork he said he needed. He did say that if he needed anything else that he would call me and then that he would call me to let me know if I was approved.
Oddly enough he told me how much my payments would be a month....is that a good sign?
How do they verify your income if it is social security? Do they go off the letter of award that I got from social security?
So..how long till I know if I am pre-approved?
Pre-approval is different than approval. What you have described does not sound like the pre-approval process. Anyone can go to an online mortgage site (e.g. Countrywide) and get "pre-approved" by submitting a simple form with a little personal information. This can take a couple of seconds or maybe a day; but it is not an "official" approval. A pre-approval just gives a ballpark idea of what you could qualify for at what rate and how much your payments would be.
When you get to the point where you have signed a sales contract and the mortgage broker is actually processing the loan, this could take a couple days to complete. They will verify everything: income, credit history, etc. before getting back to you (or they may approve the loan on some sort of contingency, e.g. an appraisal).
The fact that he told you how much your payments would be means nothing... that's a simple calculation that can be done knowing only the purchase price (or loan amount), the loan term and rate.
If you're on social security, I'm not sure how they verify this; the letter may suffice for the pre-approval, but I'm sure the lender will want to see tax records or receive verification from the IRS before approval.
Source(s):7 years ago
Should take about 10 minutes. You pull credit run it through DU or LP. That would be an approval with a conventional product. (if you are doing something else it might take more time)
You shouldnt have had to fax him/her anything. It would be an approval from fannie mae or freddie mac and all you do then is clear conditions.
If your loan officer is quoting you payments thats interesting to me without processing your loan. He/she might be new.
You prove social security by one bank statement or we just get a letter from social security. If your loan officer didnt know this... seriously get another one.
*update* Sorry my team underwrites their own files on the spot. Im FHA, VA, Conv underwriting traing. We just do it ourselves so we know in 10 minutes what the conditions are, no offense to those that actually still send files off to a company to have it underwritten. As anybody will tell you run your own DU or LP and that approval can be assigned to any company. Then the underwriter just clears conditions, your approval is good at any fannie mae freddie mac company. It doesnt take 5 days it takes 10-30 minutes... just takes them 5 days to send to to an underwriter that will actually do what they should know how to do.
Source(s)by financing_loans - 7 years ago
usually it takes max 5-6 days- depends on bank.
yes, bank needs an award letter and proof of receipt ( copy of check or bank statement if it's direct deposit)
The prequalification process should be able to be done rapidly. It's just a matter of pulling the credit report and seeing if the rest of the information that has been provided paints the picture of a loan that should be approved. An Automated Underwriting System can be utilized that will determine whether Fannie Mae or Freddie Mac will accept the loan. If that process is done correctly, and if the correct information is input into the process, the result is a good prediction of whether the loan can be done or not. The process itself can be done as rapidly as 15 minutes - it's usually a matter of other factors in the loan officer's schedule if it takes longer.
Source(s)by michiganted - 7 years ago
It's good that you got your payment figure.
Social security award letter is the way they will verify income.
It depends on lender's work load on any given day. I just got a loan approved for my client in 24 hours, but some lenders may take up to 4 or 5 days, because of their backlog.
Pre-approved just takes a minute, but it means very little. It just means "you look good to me". You have to be "conditionally approved" to have it mean anything. That means someone really checked you out and as long as you meet stated conditions and the property is ok they you are good to go.by Rico - 7 years ago
Let’s answer your questions.
Your Payment- At this point it is a calculated estimate based on the questions you answered while on the phone. (income, expenses, savings, fico score, etc)
Your Soc Sec income- Yes it will be like what mindthetwine stated in his last paragraph.
Pre-Approval time line- Depends on the company like Walter stated.
Remember, what you are being pre-approved for is the amount of the loan. Based on the amount of risk the lender is willing to take. If any of your info parameters change, a risk assessment is made and another pre-approval should be issued with a new amount.