How Long Does a Mortgage Pre-Approval Last?

A mortgage pre-approval is an initial assessment by a lender, indicating the amount you are likely eligible to borrow for a home purchase. It demonstrates to sellers that you are a serious and financially capable buyer. While it offers a clear picture of your potential purchasing power, it is not a final loan commitment and has a defined period of validity.

Typical Pre-Approval Duration

Mortgage pre-approvals generally remain valid for 60 to 90 days. This timeframe allows lenders to account for potential shifts in financial markets and to ensure your personal financial situation remains consistent. The exact duration can vary slightly depending on the lender’s policies, with some issuing letters for as short as 30 days. Lenders set these expiration dates because a borrower’s financial circumstances can change rapidly, and market conditions, such as interest rates, are subject to fluctuation.

If a pre-approval expires before a home is found, an updated assessment is needed. The expiration ensures the financial information supporting the pre-approval is current and accurate when a buyer is ready to move forward with a purchase.

Factors Affecting Pre-Approval Validity

A mortgage pre-approval can become invalid before its stated expiration date due to changes in a borrower’s financial situation. A significant change in employment, such as job loss, a substantial reduction in income, or a shift from a salaried to a commission-based role, can directly impact the lender’s assessment of your ability to repay a loan. Lenders evaluate your employment history and income stability to determine your capacity for mortgage payments.

Taking on new debt or making large purchases can also jeopardize a pre-approval by altering your debt-to-income ratio (DTI). Examples include acquiring a new car loan, making substantial credit card purchases, or opening new lines of credit. These actions increase your monthly obligations and can push your DTI beyond acceptable limits for the pre-approved loan amount. Significant withdrawals from savings or investment accounts that were part of the initial asset verification can reduce your available funds for a down payment or reserves, impacting the pre-approval’s terms.

Beyond personal financial changes, broader market fluctuations can also necessitate a re-evaluation. Substantial shifts in interest rates or changes in lending guidelines can affect the terms and amount for which you were initially approved. Lenders must ensure the pre-approval still aligns with current economic conditions and their updated risk assessments.

Reapplying for Pre-Approval

If your mortgage pre-approval is nearing its expiration date, typically within 30 days, or if significant financial changes have occurred, reapplying is a necessary next step. Lenders will require updated financial documentation to verify your current financial situation.

You should be prepared to provide recent pay stubs to confirm current income, updated bank statements to verify assets, and potentially new tax returns if a new tax year has passed since your last application. A new credit report will also be pulled to assess your current creditworthiness and ensure no adverse changes have occurred. While this may result in another hard inquiry on your credit report, multiple inquiries for a mortgage within a short period, often 14 to 45 days, are typically grouped and treated as a single inquiry by credit bureaus to minimize impact on your score.

It is advisable to contact your original lender first, as they already have much of your information on file, which can streamline the reapplication process. If your financial circumstances have changed significantly, or if you wish to explore different options, considering other lenders for a new pre-approval is also a viable approach.