ABA Family Legal Guide

Buying and Selling a Home

Financing a Home Purchase

Applying for a Loan

How long does it take to get a home loan application approved?

When you apply for the loan, ask the lender how long the approval process is expected to take. It can take anywhere from twenty-four hours to three months, depending on a variety of factors. If you have included a mortgage-contingency clause in your purchase contract, be sure to inform your lender when you apply for the loan of the date the clause expires. Usually, your lender will work with you to meet the deadline or alert you that approval will take more time. At that point, you may be able to get an extension from the seller on the contingency.

Once your loan is approved, the lender will provide you with a loan commitment, which states in writing that the lender agrees to lend a specific amount of money on specific terms. You should read this carefully as it may set forth conditions you must meet before closing, such as clearing some credit issues or even selling your current home. A copy of this commitment can be provided to the seller to assure him or her that your financing is in place.