How long does pre-approval process take?

catmw21 · October 2011

We have been working on ours for months now. We don't have a straight-forward situation. My husband is co-owner of a business and we also have a rental property and the house we live in is still in my in-law's name. It took the mortgage consultant a while to figure out how to package everything, but 3+ months is a little long isn't it?

car_ramrod · October 2011

Sounds like you have a lot going on! I got prequalified by two different banks and one was instant and one took 24 hours. 3 months is a LONG time. If it took that long to get prequalified I would be afraid to go through underwriting. They are a lot more lenient on prequalifications.

jennylove1084 · October 2011

Well, it depends. We got a preliminary pre approval based on credit score and income alone. Fairly instant. To secure it and lock in the rate we had to provide all the financial documents.

Tweetysvoice · October 2011

wow.. that is a long time. We had one online that was instant, and then three from local banks (one a credit union) that gave us pre-approval (not just qualification) within 24 hours. All they wanted was income amounts and a credit check. The actual final approval came a month later.. Have you shopped around for other lenders? Don't just limit yourself to one! We were glad we did because we found that with our local credit union we got both a better interest rate as well as over 2000 less in closing costs.

car_ramrod · October 2011

car_ramrod:
Sounds like you have a lot going on! I got prequalified by two different banks and one was instant and one took 24 hours. 3 months is a LONG time. If it took that long to get prequalified I would be afraid to go through underwriting. They are a lot more lenient on prequalifications.

Sorry I meant preapproved not prequalified. Brain fart:/

stephm0188 · October 2011

We were preapproved instantly on the phone with our bank. We never did prequalification.

jmbernadette · October 2011

Have you provided them with all the paperwork? Ours required 12 months of statements from the bank, 6 mo of pay stubs, and 3 years of tax returns.

So is the issue that it's a bit of a mix bag for you to show income since your including the rental income? That should be apparent on your tax statements - look for form 8825 (assuming you're incorporated).

Do you pay the mortgage on the house you live in directly to the lender or are you renters? If there is a verbal understanding only, the mortgage debt of that house shouldn't come up in your credit report. If it's been signed over to you, you probably need to homestead the property in your name with the county.

How long does pre-approval process take?

Re: How long does pre-approval process take?

Choose Another Board

Search Boards