How Long Does a Mortgage Pre-Approval Last?

A mortgage pre-approval is a preliminary assessment from a lender, estimating how much you can borrow for a home. It evaluates your financial standing, providing an estimated loan amount and potential interest rate. This document offers a clear budget for house hunting and signals to sellers that you are a serious and financially capable buyer. A pre-approval is not a guaranteed loan commitment, but a conditional offer based on your current financial health. It provides confidence when making an offer, as sellers often prefer buyers who have demonstrated their ability to secure financing.

Standard Pre-Approval Duration

A mortgage pre-approval typically remains valid for 60 to 90 days. Some lenders may issue letters with a shorter limit, such as 30 days, based on their policies and market conditions.

Lenders set these limits because financial factors like income, credit history, and interest rates can change rapidly. The exact expiration date will be stated in the pre-approval letter, ensuring the financial information used to assess your borrowing capacity is current and accurate.

Factors Influencing Pre-Approval Validity

Several circumstances can invalidate a pre-approval or necessitate re-evaluation before its stated expiration. A significant change in your credit score, due to new debt or missed payments, can affect your pre-approval status. Taking on new substantial debt, such as a car loan or increased credit card balances, can push your debt-to-income ratio beyond acceptable limits.

Changes in employment status, including job loss or reduced hours, or a decrease in income, directly impacts your repayment capacity, potentially invalidating the original pre-approval amount. Large new expenditures or significant withdrawals from savings can also alter your financial profile, as lenders rely on stable asset verification. Fluctuations in interest rates or changes in lending guidelines can also affect loan terms. Communicate any significant financial changes to your lender promptly, as transparency helps navigate potential issues.

Information Required for Pre-Approval

To obtain a mortgage pre-approval, borrowers must provide specific financial documentation. This allows lenders to thoroughly assess your creditworthiness and repayment ability, ensuring you meet their lending criteria. Required documents typically include:

Income verification: Recent pay stubs, often covering the last 30 to 60 days. W-2 forms from the past two years are usually required. Self-employed individuals will need to provide tax returns for the past two years, along with profit-and-loss statements.
Asset verification: Bank statements, commonly for the past two to three months, to verify funds available for a down payment and closing costs. Proof of other assets, such as retirement account statements (e.g., 401(k)s, IRAs) and investment account statements, may also be necessary.
Credit report authorization: Lenders will obtain your credit report to evaluate your credit history and score. This authorization is a standard part of the pre-approval process.
Debt details: Information on current debts, including student loans, car loans, and credit card balances, must be provided to determine your overall debt obligations.
Personal identification: A government-issued ID and Social Security Number are required to confirm your identity and for official record-keeping.

Renewing a Pre-Approval

If house hunting extends beyond the initial pre-approval period, or if you need to adjust your loan amount, renewing your pre-approval is necessary. The renewal process involves the lender reviewing updated financial information. You will need to provide updated documents like recent pay stubs and current bank statements. The lender may also perform another credit check.

If your financial situation has remained stable, renewal is straightforward, resulting in a new pre-approval letter. However, if significant changes have occurred in your income, debt, or credit, the renewed pre-approval amount or terms may differ. Initiate the renewal process before the current pre-approval expires to avoid delays when making an offer.