How Long Does Underwriting Take?

What is mortgage underwriting?

Mortgage underwriting is an in-depth examination of a loan applicant’s financial information and the property they’re interested in. The underwriter is responsible for analyzing the borrower’s credit, capacity to repay the loan and collateral to ensure the lender is making a financially sound loan decision.

How long does an underwriter take to approve a loan?

Underwriting processes can take anywhere from a few days to a couple of months, though it’s more likely to take at least a few weeks.

“The underwriting process generally takes anywhere from three to six weeks,” said Dottie Herman, a real estate expert and vice chair of Douglas Elliman Real Estate.

This process can take some time to complete because the underwriter needs to verify all of the information on a borrower's application. This is to make sure the applicant isn’t falsifying information. For example, an underwriter needs to ensure the borrower’s income matches the amount they stated in the application by viewing a pay stub or a W-2.

Once you start the mortgage process, ask your lender for an estimate of how long it will take to complete the underwriting process. Keep in mind the process may take longer than the estimated time.

For example, Jerry, a reviewer from Arizona, said that the underwriting process took “forever” and that they were dissatisfied with the overall process. “The appraisal company we got had trainees out doing the walkthrough,” he said. “They missed two key items in the appraisal, and under appraised us by at least $20,000[.]”

» MORE: 9 mortgage questions to ask your lender

Mortgage underwriting timeline

The underwriting process starts when you apply for a mortgage with a lender and ends when you close on your loan. The process may vary slightly from lender to lender, but it tends to follow the general steps listed below. Some steps can happen simultaneously, like the title search and the appraisal, which helps to speed up the process.

Apply for preapproval with a lender: typically a few days

First, you’ll submit a preapproval application to your mortgage lender. You can do this online or in person at your lender’s office. You’ll provide personal information like your name, address and Social Security number. You’ll also need to provide detailed financial information, such as your income and bank account balances.

Take your time when completing the application. You want to make sure the information you provide is correct. Your signature acknowledges that the information is both true and accurate to the best of your knowledge.

If you’re preapproved, you’ll receive a letter with information about your loan maximum, which you can use to make offers on homes. Note that preapproval letters have an expiration date, which is typically 60 to 90 days, depending on the lender.

Documentation verification: typically up to 2 weeks

Once you submit the application, your lender will require you to submit documents like W-2s, tax returns and bank account statements. This lets the underwriter verify your income and other assets. When the underwriter has completed a review of your finances, you should receive a preapproval decision within one to two weeks.

Home appraisal: typically less than 1 week

The underwriting process essentially pauses until you’ve found a home to buy and the seller accepts your offer. Then the underwriter evaluates the collateral on the loan, meaning the home itself. They need to ensure the home is at least worth what you’re borrowing.

The underwriter will order a home appraisal conducted by a certified appraiser who inspects the home’s condition and compares it with similar homes in the area. The home appraiser will then report an assessed value to the underwriter, usually within a few days of the appraisal. In some cases, you may be granted an appraisal waiver if the home’s value can be determined through other methods.

Title search: typically up to 2 weeks

The underwriter will also require a title search, which is a thorough review of public documents. The title search ensures that the home’s title can be successfully transferred from the seller to the buyer at closing. Depending on your state's requirements, you can hire a title company or a real estate attorney to complete the title search. This step in the underwriting process could take 10 to 14 days to complete.

Underwriting decision: typically up to 2 weeks

The underwriter will reach a final decision once the title search and appraisal are complete. They may also require additional information from you at this time. For example, if the underwriter notices a recent large purchase, you may need to write a letter explaining the purchase or withdrawal. Underwriters will pull your credit report again just prior to closing to ensure there are no major changes.

If the underwriter is satisfied with the title search and appraisal results, you should receive a verified approval decision within a week or two. Some decisions may arrive sooner, such as within a few days, depending on how many applications the underwriter is currently handling.

Closing: typically up to a few days

Once you receive verified approval, you’ll get the closing disclosure to review before closing. This document finalizes your mortgage loan terms, and lenders are required to provide it at least three business days before the closing date. This gives you time to review the loan details before signing the agreement at closing.

The closing occurs on a specific date, usually 30 to 60 days after acceptance of the purchase offer. You’ll sign the closing disclosure and other legal documents, like the note. Review the cash-to-close amount detailed on the closing disclosure — these are the funds you’ll need to bring to closing, either by wire transfer or by cashier’s check.

» MORE: What does clear to close mean?

How to speed up the underwriting process

While many factors are out of your control, such as the underwriter’s workload, there are some ways to be proactive.

1. Fill out your application accurately

To ensure a smooth underwriting process, be accurate and honest when filling out the application.

“The best way to speed up the process is to make certain that all of your paperwork is completed and accurate,” Dottie Herman said.

2. Be proactive about documentation

Make sure you already have, or have easy access to, any financial documentation the underwriter might need.

“I would also try to anticipate what the lender might ask for during the process so that those additional documents can be found and submitted quickly,” Herman said. “Don’t be afraid to take control and stay on top of things for the duration of the underwriting process in order to meet tight deadlines.”

To prevent delays, avoid any major changes to your credit once you start the underwriting process.

3. Maintain good credit

Maintaining good or excellent credit can help. Many lenders use automated underwriting to speed up approval decisions. Automated underwriting instantly approves borrowers that meet or exceed the lender’s specified credit profile.

4. Don’t open new credit

You’ll also want to avoid opening new credit accounts during the underwriting process and before closing. Your underwriter will pull your credit report again just before closing to ensure there are no major changes. Any new changes could delay or compromise your final approval.

Bottom line

Underwriting determines if you’re qualified to take out a home loan. It starts when you submit a mortgage application and ends just before you close on your home. The entire process usually takes anywhere from a few days to a couple of months, and it includes steps like the appraisal and title search.

You can help speed up the process by having an excellent credit history and promptly responding to any requests for information. You should also provide accurate information on your application and not open any new credit accounts before you close on your home.