How Long Does It Take to Get Approved for a Home Loan in California?

California home buyers tend to have a lot of questions about the mortgage side of the buying process. One of the most common questions has to do with timing. People often ask:

How long does it take to get approved for a home loan in California?

The timeline can vary due to a number of factors. As we’ve explained in a previous article, the overall escrow and closing process can take anywhere from 30 to 40 days on average. But it can also be completed faster than that, in some cases.

The escrow process “officially” begins when you sign a purchase agreement with the seller. So we’re not accounting for the full house-hunting process here. Depending on how competitive your real estate market is, the house-hunting process could take anywhere from a few weeks to many months. That’s a different timeline entirely.

How Long to Get Approved for a Home Loan in California

It’s also important to distinguish the difference between pre-approval and final approval. Getting “approved” for a home loan in California can actually mean different things, depending on the context.

Final approval and funding happens after the home appraisal and underwriting processes have been completed. Pre-approval, on the other hand, happens on the front end of the process and doesn’t take long at all.

Here’s the key difference between these two terms:

• Pre-approval: This is when the mortgage lender reviews your financial situation to determine how much you’re able to borrow. In California, the pre-approval process usually happens before the home buyer has even started the house-hunting process. That’s the whole purpose of getting pre-approved. It allows you to shop for a home within a specified price range, based on your mortgage financing. A borrower can get pre-approved for a home loan in California in a matter of days, once they have their financial documents rounded up.
• Final approval: Once a borrower has been pre-approved for a home loan in California, they can start the house-hunting process and make an offer with the seller. After that, the property will be appraised to determine its value and the mortgage loan will go through an underwriting process. This broader process is often referred to as “escrow.” It ends on closing day, when the borrower signs all finalized documents and pays whatever closing costs are due. This overall process might take 30 to 40 days depending on the situation, though it can happen faster.

House Hunting: The Unknown Variable

We can provide estimates and averages as to how long it takes to get approved for a home loan in California. But the one thing we can’t control is the length of time it takes for you to find a house. This is something of an unknown variable, since the house-hunting process can vary greatly from one buyer to the next.

For example, in a highly competitive real estate market with limited inventory, a home buyer might spend months trying to find a property. But in a slower market with more supply available, a buyer might only spend two or three weeks looking for a house.

Once the purchase agreement has been signed, the escrow process begins. After this, it might take an average of 30 days or so to get fully approved for a home loan in California.

The Mortgage Underwriting Timeline

The mortgage underwriting process can also vary from one borrower to the next. Underwriting is a final review to make sure all documentation is in order and all loan requirements have been met. Some borrowers cruise through this process without any issues. In other cases, the underwriter might identify certain conditions that need to be resolved prior to closing.

We work closely with out clients to make sure the underwriting process goes as smoothly as possible, since it can affect the approval and closing timeline.

Here’s a closer look at the underwriting process.

As you can see, there are many factors that can determine how long it takes to get approved for a home loan in California. It’s rarely a “one-size-fits-all” situation.

At Bridgepoint Funding, we go above and beyond to deliver an efficient mortgage process to our clients. We offer some of the fastest closing times you’ll find anywhere. We can also tell you in advance how long it might take for your California home loan to get approved, based on the specifics of the transaction. Please contact us if you have questions, or if you’d like to move forward with the mortgage application process.