Pre-approval is one of the first and best steps you can take to get into your new home.

Of course, like any step in the process, it also takes a bit of time. And for motivated potential homeowners, every little bit of time is just slowing down their opportunity to step into the home of their dreams. But even though it’s an extra step – it’s well worth it. Because pre-approval can mean the difference between getting a new home… and not.

So how long does it take to get pre-approval for your home loan? And how can this help you in the long run?

How long does it take to get pre-approval for your home loan?

The simple answer to the question of how long does it take to get pre-approval for your home loan is three to five business days.

But the real answer is a bit more roundabout. And that is – it depends.

For a simple, straightforward application where you have a strong deposit and are a robust candidate, you could be pre-approved in as little as one day. Banks and non-bank lenders are highly motivated to provide financing when you are a low risk borrower.

However, most applications take a bit longer and fall within the three-to-five-day period. And for complicated transactions, you can expect the process to take up to about two weeks.

So, what makes the difference?

Factors impacting your home loan pre-approval time

• Credit score
• Debt-to-income ratio
• Down payment
• Work history
• Probationary employment or job changes
• Past loan payment history
• Current loans outstanding
• Credit card limits

Every lender will take a look at these factors (and others) to create a snapshot of the kind of buyer you are. And the amount of risk that you represent for them as the lender. This will then allow them to assess your suitability for a loan, and make a determination from there.

If you are in the green on all the above factors, you might get your pre-approval very quickly. But if there is anything that they need to look at a little more closely, that may mean your pre-approval could take a little more time.

The benefits of getting a home loan pre-approval

Getting a home loan pre-approval is not a 100% guarantee that your actual mortgage application will be approved when the time comes. But they are a very good indication of how much a lender believes you are capable of repaying. That means they are also a very good indication of how much you can really, truly afford.

When you have this understanding then you won’t waste time doing walk throughs of homes that you’ll never be able to afford. And you can focus your time and energy on those that you can. Better yet, your pre-approval will allow home sellers to be more confident in you as a buyer. This will give you a stronger place to negotiate from. And it will give all the parties confidence that you can come through in the end.

At the end of the day, you’ll find yourself walking through the door much sooner with a home loan pre-approval in place.

Applying for a home loan pre-approval

Now that we’ve answered the question of how long does it take to get pre-approval, you might be chomping at the bit to get the process started.

Our Guide to Home Loan Pre-Approvals is the place to start. It will step you through exactly what you need to apply for a home loan pre-approval. It also contains valuable information about how long pre-approvals last (hint: three to six months). And why you should be very clear about your preferred mortgage broker or lender before you get started!

Read more: A Guide to Home Loan Pre-Approvals

Ready to get started?

If you're ready to start the process of getting a home loan pre-approval, get in touch with our expert team at Lending Loop. We’re here to help you navigate every step of the borrowing process. And we can give you important advice on when and how to complete a home loan approval application.

Of course, if you have any other questions about your mortgage, your interest rates, refinancing or more, get in touch. We’d be happy to help.