Duration for Loan Pre-approval

Gabriel Mikael
1 day ago
2 min read

The duration for loan pre-approval typically depends on the bank, your financial situation, and the completeness of your submitted documents. Here's a breakdown of the loan pre-approval process and its typical duration:

1. Initial Document Submission:

Time: 1 to 3 days
Details: Once you submit your documents (proof of income, bank statements, IDs, etc.), the bank reviews them to ensure everything is complete and meets their initial requirements.

2. Credit Check and Financial Assessment:

Time: 5 to 10 business days
Details: The bank will conduct a credit check to review your financial history and assess your debt-to-income ratio. This step determines your creditworthiness and helps the bank decide the loan amount you're eligible for.

3. Property Review (if applicable):

Time: 5 to 10 business days
Details: If you already own the land or property you're building on, the bank may start conducting an initial review of the property title and construction plans during the pre-approval stage.

4. Pre-Approval Decision:

Time: 7 to 15 business days after document submission
Details: After evaluating your financial situation and documents, the bank will issue a pre-approval letter. This letter states how much you’re eligible to borrow, your potential interest rate, and loan terms.

Total Duration: 1 to 3 weeks (7 to 20 business days)

Factors That Can Affect the Pre-Approval Timeline:

Completeness of Documents: If your documents are missing or incomplete, it can delay the process by several days or weeks.
Bank Processing Speed: Some banks are faster than others. For example, BPI or Security Bank may process pre-approvals faster, while larger institutions like BDO or PNB might take longer.
Credit History: If there are issues with your credit report (such as errors or negative items), the process may take longer while the bank investigates these matters.

Tips to Speed Up Pre-Approval:

Submit Complete Documents: Double-check all the required paperwork before submission to avoid back-and-forth delays.
Choose Banks Known for Fast Processing: Banks like Security Bank or Metrobank are known to have faster loan processing times, especially if you have an existing account with them.
Follow Up Regularly: Keep in touch with your loan officer to ensure your application is moving through the system without delays.