+2 votes
asked in Mortgage by
After submitting an application, how long does it typically take for you to issue a pre-approval letter?  I understand from reading on this site that the pre-approval would be issued from your underwriter and not a loan officer.  Is this correct?  So along with my application, I would need to submit all the normal documents (2 years taxes, W-2's, 2 mos bank statements, last 2 pay stubs) in order to receive pre-approval?  Just wondering how long this typically takes on average.

3 Answers

0 votes
answered by (21.2k points)

Great question! 

After filling out the application and sending in required documentation the process does take about a week, sometimes a few days longer. Keep in mind this is a full commitment to lend and not a pre-qualification letter. Some files do take longer than others depending on the severity of the loan. For example, if you have switched jobs a few times in the past 24 months, our processing team will need to verify employment with every employer. That can take time. The loan officers at the Gustan Cho team will know if your loan looks like something we can get approved or not within a day or so. But to get the full pre-approval letter it does take a week. Please see my blog the TBD UNDERWRITING PROCESS. Are you in the process with us already? If not please reach out to me on 630-659-7644 to get started.

+1 vote
answered by
Mike Gracz is correct. Our pre-approvals takes 3 to 5 business days so about a week. A loan officer will issue a pre-qualification, however, all of our pre-approvals are fully underwritten and signed off by our mortgage underwriters. All of our pre-approvals are loan commitments. This is the reason we close 100% of all of our loans. Once our borrowers gets a pre-approval, they can enter into a real estate purchase contract. The only conditions missing is the purchase contract, appraisal, and updated docs like updated paycheck stubs, bank statements, etc.
+1 vote
answered by
From the time you submit your real estate purchase contract, it takes about three to four weeks to close on your loan. No more than 30 days.
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