How Long Does a Mortgage Pre-Approval Last?

A mortgage pre-approval is an initial assessment by a lender, indicating how much money you are provisionally qualified to borrow for a home purchase. It is based on a review of your financial standing, including income, assets, and credit history. This document helps you focus your home search within a realistic budget and demonstrates financial readiness to real estate agents and sellers, providing a significant advantage.

Duration of a Mortgage Pre-Approval

A mortgage pre-approval is not a permanent commitment from a lender; it comes with a defined expiration date. The typical validity period for a mortgage pre-approval ranges between 60 to 90 days. While this is the most common timeframe, some lenders may issue pre-approvals for shorter periods, such as 30 days, or occasionally longer, up to 120 or even 180 days, depending on their internal policies and market conditions. Lenders establish these expiration dates because financial circumstances and market conditions are subject to change. This ensures the pre-approval reflects your current financial situation and market environment, crucial for loan eligibility and terms.

Factors Influencing Pre-Approval Duration

The temporary nature of a mortgage pre-approval is directly linked to the dynamic aspects of both a borrower’s financial health and the broader economic landscape. Changes in your personal financial situation can significantly impact the continued validity of your pre-approval. For instance, any shifts in income, such as a job change or a reduction in earnings, require reassessment by the lender. Your credit score is another influential factor; a sudden decrease due to new debt obligations or missed payments could alter the terms you initially qualified for.

Acquiring new loans, such as an auto loan or substantial credit card debt, can affect your debt-to-income ratio, potentially impacting your borrowing capacity. Beyond personal finances, external economic and market conditions also play a role. Fluctuations in interest rates, influenced by broader economic indicators and central bank policies, can change the loan amount you qualify for even if your personal finances remain stable. Lenders also adjust their standards and policies based on shifts in the housing market, which might lead to re-evaluation of pre-approval terms.

What Happens When a Pre-Approval Expires

When a mortgage pre-approval reaches its expiration date, the original terms and conditions outlined in the letter are no longer guaranteed. The expired pre-approval letter cannot be used to make an offer on a home, as it no longer serves as an active indication of your financial readiness.

Expiration does not mean you are permanently unable to secure a mortgage; rather, it signifies that the lender needs to re-evaluate your financial profile. The new terms, if approved, may differ from the original pre-approval, reflecting any changes in your financial situation or current market conditions. An expired pre-approval can introduce delays in the home-buying process, especially if you are actively negotiating an offer.

Renewing or Obtaining a New Pre-Approval

If your mortgage pre-approval is nearing its expiration or has already expired, you will typically need to contact your lender to initiate a renewal or re-application process. This ensures you maintain an active pre-approval status while searching for a home. The process often involves providing updated financial documentation to the lender.

Common documents requested include recent pay stubs (30-60 days) and bank statements (2-3 months for all accounts). Lenders may also ask for your W-2 forms or tax returns from the past two years to verify income and employment history. In many cases, a new credit check, which is a hard inquiry, will be performed to assess your current credit score and debt obligations. This renewed evaluation ensures the pre-approval reflects your current financial standing and helps avoid delays when you are ready to make an offer.