How Long Does It Take to Get Approved for a Private Mortgage?

If a bank told you it takes 30-45 days to approve a mortgage, you've already been conditioned to expect a slow process. Private mortgages break that expectation. Most deals close in 5-10 business days. Some close in 24-48 hours. Here's why — and what actually determines your timeline.

The Typical Private Mortgage Timeline

Private mortgage closings move faster than bank mortgages because they skip the bureaucracy. Here's the breakdown:

• 24-48 hours: Pre-approval with a term sheet. Submit documents, get a clear answer and a rate/amount offer. You can take this to a property or use it as leverage in other negotiations.
• 3-5 business days: Conditional approval. Lender reviews the property, conditions are cleared, legal is engaged.
• 5-10 business days: Full close. Documents signed, funds advanced. This is the norm for standard private mortgage deals.
• 10-15 business days: Complex deals — non-owner-occupied, mixed-use properties, or clients with unusual income situations. Still faster than a bank.

For context, a bank refinance typically takes 30-60 days. A private mortgage at the same property can close in under two weeks.

Documents That Determine Your Speed

The fastest approvals happen when borrowers submit complete documentation upfront. Here's what you'll need:

• Property details — Address, current value estimate, existing mortgage balance(s), property type
• Two pieces of government ID — For both the borrower and any guarantors
• Proof of ownership — Current mortgage statement showing remaining balance, or recent property tax notice
• Income documentation — Most private lenders want at least 3 months of bank statements and a basic income summary
• Current credit summary — You don't need a perfect score, but knowing where you stand helps the broker position your deal correctly from day one

The fastest deals are the ones where borrowers come with a property, a clear picture of what they owe, and basic income documentation. Missing docs are the single biggest cause of delays in private mortgage approvals.

What Slows a Private Mortgage Approval

Despite being faster than banks, private mortgages still hit snags. The most common:

• Property condition issues — Significant deferred maintenance, unfinished renovations, or unusual construction extend the appraisal process
• Title complexity — Multiple owners, existing encumbrances, or recent title transfers extend the legal review
• Income verification gaps — Self-employed borrowers with no filed tax returns create lender discomfort
• Property location — Rural properties or unusual property types take longer to evaluate

If any of these apply to your situation, your broker should flag them upfront so you aren't surprised mid-process. Good brokers set expectations before you invest time.

The Pre-Approval: Why It's Worth Getting Early

Don't wait until you've found a property to start the private mortgage conversation. A pre-approval takes 24-48 hours and gives you a firm number: how much you can borrow, at what rate, against which property types. That knowledge changes how you negotiate — whether you're buying, refinancing, or making a competing offer.

For more on how private mortgages work and what to expect, see our full guide: 5 Things to Know Before Applying for a Private Mortgage.

What Happens After You're Approved

Once approved, the deal moves to legal. Both sides need lawyers — yours and the lender's. The legal phase typically runs 2-5 business days for standard deals. Your lawyer handles title search, mortgage registration, and fund disbursement.

On closing day, you sign documents, the mortgage registers, and funds are wired. You typically have keys and funds within the same business day the legal work completes.

The Bottom Line

Private mortgage approval is fast because the process is built around equity and certainty. If your property has value and your documentation is clean, you can close in under two weeks — no surprises, no last-minute credit committee declines.

For time-sensitive situations — a power of sale deadline, a business deal that closes in two weeks, an inheritance property you need to access — private lending's speed is a genuine competitive advantage. Ready to find out where you stand? Use our free approval estimator for a fast, no-obligation read on your situation.