Getting a mortgage loan approved can be a stressful and uncertain process. As an applicant, you submit your information and documentation and then anxiously wait to hear back if you are approved. Knowing what to expect and look for can help reduce some of that stress and uncertainty. Here are some signs that indicate your mortgage loan is likely approved:
You Receive a Clear to Close Notification
One of the clearest signs your mortgage is approved is if you receive a “clear to close” notification from your lender. This means the underwriter has officially approved your loan application and you are clear to move forward with closing on the mortgage. This notification will outline any final conditions that need to be met before closing, but it signals that you have gotten over the major hurdle of underwriting approval. If you receive this notice, you can be confident your loan is approved
Your Loan Officer Says You Are Approved
Often, your loan officer or mortgage broker will inform you when your loan application has been approved by the underwriter. They have direct communication with the underwriter and will get notification once a decision has been made. If your loan officer tells you your application was approved, you can trust that information, even if you haven’t yet gotten official documentation. However, be sure to still wait for the final clear to close notification before moving forward with closing plans.
You Receive Closing Documents
Another indication your mortgage is approved is if you receive closing disclosure documents and instructions from the lender These documents outline the final loan details including interest rates, monthly payments, and closing costs. Lenders will only send these if your loan has been approved and they are ready to close Receiving these documents is a sign everything is on track for your mortgage approval.
Your Loan Details Are Locked In
If your lender locks in your interest rates and other loan details, it means approval is imminent. Lenders won’t lock in rates until the underwriter approves the application and clears it to close. If your loan officer informs you your rates are locked, you can assume your approval is coming soon.
The Underwriting Timeline Passes
Most mortgage approvals happen within 30-60 days after submitting your application and documentation. If you are approaching or past that timeline without hearing of any issues, your approval is likely coming soon Call your loan officer to confirm, but the passing of the typical underwriting timeline is usually a good sign
No Requests for Further Documentation
If the underwriter needed clarification or more documentation from you, they will request it in a timely manner. As you near the end of the underwriting period without any requests for additional documents, that is a good indicator your application is complete and approval is on the way. No news is good news in this case.
Your Credit Report is Checked
The lender will need to pull your credit report during the approval process. If you see new credit inquiries from your lender on your credit report, it means the ball is rolling on your application. New credit checks are common as you get closer to the approval finish line.
You Are Asked to Pay Appraisal Fees
Lenders won’t order a home appraisal until they are relatively confident your loan will be approved. If you are asked to pay appraisal fees upfront, it means they are getting ready to order the appraisal and expect approval. This is often one of the last steps before final approval.
Get Clarification from Your Lender
If you are unsure of your approval status, reach out to your loan officer directly to get clarification. They will be able to look at your application status and let you know if approval is pending or if there are any issues holding it up. Don’t be afraid to ask questions – getting answers can help you plan appropriately.
The mortgage approval process involves many steps and waiting periods. While it’s not guaranteed until you get final word, there are many signs during the process that can give you confidence your approval is imminent. Being informed about what to look for can help reduce frustration and keep you on track. With the right knowledge, you’ll be able to plan and prepare appropriately during this anxious waiting period.
Mortgage processing and underwriting
Once your full loan application has been submitted, the mortgage processing stage begins. For you, the buyer, this is mostly a waiting period.
But if you’re curious, here’s what happens behind the scenes:
First, the Loan Processor prepares your file for underwriting.
At this time, all necessary credit reports are ordered, as well as your title search and tax transcripts.
The information on the application, such as bank deposits and payment histories, are verified.
Any credit issues, such as late payments, collections, and/or judgments, require a written explanation.
Once the processor has put together a complete package with all verifications and documentation, the file is sent to the underwriter.
During this time, the underwriter will review your information in detail. It’s their job to “nitpick” the information you’ve provided looking for missing items and red flags.
They’ll primarily focus on the three Cs of mortgage underwriting:
- Capacity: Will your income and current debt load allow you to make the loan’s payments each month?
- Credit: Does your credit history show that you pay debts on time?
- Collateral: Is the value of the property you’re buying sufficient collateral for the loan? (In other words: Did the appraisal show the purchase price and home value are aligned?)
During the underwriting process, your loan officer may come back with questions. You should respond as quickly as possible to ensure a smooth underwriting process.
Order a home inspection
As you work through the mortgage process, you may also order a home inspection. Home inspections are usually recommended, though some buyers choose to waive them in a competitive market.
A thorough home inspection gives you important details about the home beyond what you may be able to see on the surface.
Some of the areas a home inspector checks include:
Getting a home inspection is important because it helps the buyer know if a home may need costly repairs. If the home needs extensive repairs, you may want to look for another home.
Even if you do want to continue with the purchase, what is uncovered during an inspection can become part of a sales negotiation between buyer and seller, and their real estate agents.
Get PreApproved for a Home Loan – 2025 Tips & Tricks
FAQ
How do you know your mortgage has been approved?
A mortgage offer means your application has been accepted by a lender. After the offer, you’ll sign a contract with your lender to let them know you’re happy with it.
How long does it take for a mortgage loan to be approved?
How do you know your loan is approved?
- Reaching Out to Customer Service. You can contact your bank through its customer service if you want an update about your loan application status. …
- Using Online Portals and Mobile Apps (for Other Banks) …
- Tracking via SMS, Email, and WhatsApp.
How long does it take a mortgage lender to make a decision?
The mortgage process can typically take between 2 and 4 weeks*. Factors, including your request, how busy the lender is, and how quickly you respond to requests, can all affect how long the process can take. Buying a home can take around 6 months from start to finish, but this can vary**.