If you are planning to buy a home, you probably know that getting a mortgage approval is one of the most important steps in the process. A mortgage approval is a letter from a lender that confirms that you are eligible to borrow a certain amount of money at a certain interest rate and terms. A mortgage approval can also give you an edge over other buyers, as it shows the seller that you are serious and ready to buy.

However, getting a mortgage approval from a traditional bank or credit union can be a long and tedious process. You may have to visit a branch, fill out a lot of paperwork, provide various documents, and wait for days or weeks to get a response. And even if you get approved, you may not get the best deal or the lowest rate.

That's why more and more homebuyers are turning to online lenders for their mortgage needs. Online lenders are non-bank lenders that operate entirely on the internet. They offer a faster, easier, and more convenient way to get a mortgage approval in minutes. They also offer a variety of loan options, competitive rates, and flexible terms.

But how do online lenders work, and what are the pros and cons of using them? In this article, we will explain everything you need to know about online lenders and how to get a mortgage approval in minutes with them.

## How online lenders work

Online lenders use technology to streamline the mortgage application and approval process. They allow you to apply for a loan online, from anywhere and at any time. You can use your computer, tablet, or smartphone to fill out a simple form, upload your documents, and check your rates. You can also compare different loan options and terms, and choose the one that suits your needs and budget.

Online lenders also use automated underwriting systems to evaluate your creditworthiness and eligibility. These systems use algorithms and data to verify your information, calculate your debt-to-income ratio, and determine your loan amount and interest rate. They can also perform a soft credit check, which does not affect your credit score, to prequalify you for a loan.

Once you submit your application, online lenders can give you an instant decision and a pre-approval letter. A pre-approval letter is a conditional approval that shows how much you can borrow, at what rate, and for how long. It also shows the seller that you have a lender backing you up, and that you can close the deal quickly.

However, a pre-approval letter is not a final approval. You still need to complete the full application, provide more documents, and go through a hard credit check, which may affect your credit score. You also need to get an appraisal of the property you want to buy, and a title search to make sure there are no liens or issues with the ownership. These steps may take a few days or weeks, depending on the lender and the property.

Once everything is verified and approved, you can move on to the closing stage, where you sign the final loan documents and finalize the transaction. Online lenders can also speed up the closing process by using digital signatures and electronic transfers. Some online lenders can close your loan in as little as 10 days, compared to the industry average of 30 to 45 days.

## Pros and cons of online lenders

Online lenders have many advantages over traditional lenders, but they also have some drawbacks that you should be aware of. Here are some of the pros and cons of online lenders:

### Pros

- Convenience: You can apply for a loan online, from the comfort of your home or office, without having to visit a branch or meet with a loan officer. You can also access your loan information and status anytime, anywhere, and communicate with your lender via phone, email, or chat.
- Speed: You can get a pre-approval letter in minutes, and a final approval and closing in days, instead of weeks or months. This can help you save time and avoid delays or missed opportunities.
- Choice: You can choose from a wide range of loan options, such as fixed-rate, adjustable-rate, conventional, FHA, VA, USDA, jumbo, and more. You can also compare different lenders and offers, and find the best deal and rate for your situation.
- Savings: You may be able to save money on fees and interest rates, as online lenders have lower overhead costs and more competitive pricing. Some online lenders also offer discounts or incentives for setting up automatic payments, using their services, or referring others.

### Cons

- Internet dependency: You need to have a reliable internet connection and a compatible device to apply for a loan online. You also need to be comfortable with using technology and uploading documents electronically. If you encounter any technical issues or glitches, you may have to contact the lender's customer service or technical support for assistance.
- Lack of personal interaction: You may not be able to meet with your lender face-to-face or build a personal relationship with them. You may also have to deal with different representatives or departments throughout the process, which can be confusing or frustrating. If you prefer a more human touch or a local presence, online lenders may not be the best option for you.
- Potential scams: You need to be careful and vigilant when applying for a loan online, as there may be some fraudulent or unscrupulous lenders who may try to scam you or steal your information. You should always check the lender's reputation, reviews, ratings, and credentials before giving them any personal or financial information. You should also avoid any lender who asks for upfront fees, guarantees approval, or offers unrealistic terms.

## How to get a mortgage approval in minutes with online lenders

If you are interested in getting a mortgage approval in minutes with online lenders, here are some steps you can follow:

- Do your research: Before applying for a loan online, you should do some homework and research different online lenders and loan options. You can use online tools like [search_web("online lenders comparison")] to compare rates, fees, terms, and features of various online lenders and loans. You can also read customer reviews and testimonials, and check the lender's accreditation and rating with the Better Business Bureau or other reputable organizations.
- Check your credit: Your credit score and history are important factors that affect your loan eligibility and interest rate. You should check your credit report and score before applying for a loan online, and make sure there are no errors or negative items that may lower your score or hurt your chances of approval. You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year through [AnnualCreditReport.com](^1^). You can also check your credit score for free through various online platforms, such as [Credit Karma](^2^) or [NerdWallet](^3^).
- Gather your documents: You will need to provide some documents to verify your identity, income, assets, and debts when applying for a loan online. These may include your driver's license, Social Security card, pay stubs, W-2 forms, tax returns, bank statements, investment statements, and other financial documents. You should gather these documents in advance and have them ready to upload or email to your lender when requested.
- Apply for a loan online: Once you have chosen an online lender and a loan option, you can apply for a loan online through the lender's website or app. You will need to fill out an online form with some basic information, such as your name, address, phone number, email, income, assets, debts, and the property you want to buy. You will also need to authorize the lender to pull your credit and verify your information. The lender will then give you an instant decision and a pre-approval letter, which you can download, print, or email to yourself or your real estate agent.
- Complete the full application: After getting a pre-approval letter, you will need to complete the full application and provide more documents and information to the lender. The lender will also perform a hard credit check, which may affect your credit score slightly. The lender will then review your application and documents, and give you a final approval and a loan estimate, which is a document that shows the final terms and costs of your loan.
- Close the loan: The last step is to close the loan and finalize the transaction. The lender will order an appraisal of the property you want to buy, and a title search to make sure there are no liens or issues with the ownership. The lender will also prepare the closing documents and schedule a closing date and time with you and the seller. At the closing, you will sign the loan documents, pay the closing costs and fees, and receive the keys to your new home.

## Conclusion

Online lenders are a great option for homebuyers who want to get a mortgage approval in minutes. Online lenders offer a faster, easier, and more convenient way to apply for a loan online, from anywhere and at any time. They also offer a variety of loan options, competitive rates, and flexible terms. However, online lenders also have some drawbacks, such as internet dependency, lack of personal interaction, and potential scams. You should weigh the pros and cons of online lenders and compare different lenders and offers before applying for a loan online. You should also follow the steps above to get a mortgage approval in minutes with online lenders.