When you’re a home hunting, getting approved in advance for a mortgage is an essential first step. But how long does that pre-approval actually last? Whether you’re browsing a home for sale in Austin, Texas, or planning on making an offer at a home in Seattle, Washington, knowing a pre-approval timeline can help you plan your next move and avoid surprises.
This Redfin article explains how long your mortgage pre-approval is valid, what happens when it expires, and how to renew it if necessary.
What is pre-approval for a mortgage?
A pre-approval of a mortgage is a letter from a lender that shows that they are willing to lend you a home. This is based on a detailed review of your financial situation, including:
Your Credit Score Income and Employment History Obligations (DTI) Specific Assets and Liabilities
Unlike prequalification (an estimate that is not a formal estimate), preapproval involves hard credit checks and document verification. Sellers often view buyers as more serious and reliable in pre-approval letters.
>> Read: Before Approval and Prequalification
How good is pre-approval?
Pre-approval for most mortgages is valid for 60-90 days, but this may vary depending on lender and market conditions. This is a simple breakdown:
Lenders Typical validity period Large banks 60-90 days Credit unions 60-120 days Online lenders 30-90 days
This time frame exists because of the financial situation (credit score, income, liability) and market conditions that may change over time.
Why does Priapor Poval expire?
Lenders set expiration dates with pre-approval for two main reasons.
Financial Changes: Credit score, income, or debt can change over a few months. Market Condition: Interest rates and loan programs fluctuate, affecting borrowing.
>>Read: Can I get a mortgage from a new job?
What happens when pre-approval expires?
If your pre-approval expires before you find a home:
You must contact your lender to update your financial information. The lender can withdraw your credit again and request an updated pay stub, bank statement or tax statement.
Pro Tip: Avoid buying large quantities or opening new credit accounts while hunting homes. This may affect updates.
Can I renew my pre-approval for a mortgage?
Yes, you can renew your pre-approval once the expiration date has expired. The process is usually easier than the first application, as lenders already have most of the information in their files. Update:
Please contact your lender before the expiration date. Submit your updated financial documents. Allow lenders to perform new credit checks.
How to avoid expiration before approval
To keep it enabled before approval while searching for a house:
Start your house hunt immediately after being approved in advance. Work with real estate agents to quickly make competitive offers. Stabilize your finances. They don’t switch jobs, buy bulks, or take on new debts.
Key takeout
Most preapprovals last for 60-90 days, but this is different. You can update it with updated financial information. To avoid delays, you will be approved in advance when you are ready to actively shop for your home.
Once approved in advance, the next step is to choose the loan that suits your needs. Check out our guide on the types of home loans. How to choose the right mortgage to explore options.
Pre-approval FAQ for mortgages
1.How long will the pre-approval last?
Most prior to approval, it is valid for 60-90 days depending on the lender.
2. Does pre-approval of a mortgage guarantee the loan?
No, that’s not a guarantee. Final approval occurs after you make the offer and the lender will verify all the details.
3. Can I get multiple pre-approvals from various lenders?
Yes, and shopping within 30 days will not hurt your credit score.
4. What is the difference between pre-approval and pre-qualification?
Pre-qualification is a rough estimate based on self-reported information. Pre-approval includes credit checks and document reviews, making it more accurate and reliable for the seller.
