For some home buyers, anxiously waiting for the decision on their home loan application can seem like it takes forever. In reality, it doesn't take that long from the time the application is submitted until it gets approved or rejected.
These are the basic steps for the mortgage loan application process:
- Meeting with a loan officer. During this meeting, you’ll provide the loan officer with information on your financial situation. The loan officer can give a rough estimate on what you might qualify for, which is known as a pre-approval.
- Completing your application. You’ll need to gather up the information required for the application, such as bank statements, tax records and W2 forms. You’ll also need to hire a local appraiser to determine what the home you’re interested in is worth.
- Submitting your application. Once you submit your mortgage application, the lender has three days to look it over and give you a good faith estimate, which has information on the loan, fees and terms offered, and a truth-in-lending form, which lets you know the loan’s annual percentage rate.
- Having your application reviewed. After you receive the documents from the lender, they pass your application over to processors for a closer inspection. These processors look for any information that indicates that you might be a risky applicant.
- Waiting for the underwriter’s decision. The underwriter is responsible for deciding whether your mortgage application should be approved or rejected. The underwriter also ensures that your application meets mortgage lending guidelines.
The mortgage loan application process can take as little as a few days if your situation is a simple, straightforward one. It might take a little longer if anything questionable appears on your application.
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