Getting approved for a loan can take as little as a few hours or as long as a week or more. There are a few steps between applying for the loan and actually being approved for the loan. Let’s review.
Getting pre-qualified: The stage of getting pre-qualified is usually when you apply for the loan, or receive a pre-qualified offer in the mail, email, or other method. While pre-qualified offers are based on your personal information, they often only involve a soft credit pull. Therefore, the lender will likely need to do a hard credit pull and verify your information before approving the loan. Pre-qualified offers can be contingent while approved loans can be funded.
Accepting the loan offer: To take the next step, you’ll want to accept the loan offer of choice. This can kickoff the underwriting process where the lender can verify your information.
Underwriting: During this stage the lender can verify your information in greater detail. They may ask for supporting documentation such as proof of income or identification during this stage. Keep an eye out for any requests made by the lender to help the process move along faster.
Receive loan approval: Once the lender has verified your information, they can extend a loan approval. Now, your loan can be funded. Approved loans can be funded in as little as 1-2 business days, although funding times can vary.