How Long Does a Mortgage Pre-Approval Last?
Understand your mortgage pre-approval's lifespan, the factors that can change it, and how to keep it current for a successful home search.
A mortgage pre-approval serves as a conditional offer from a lender, indicating the amount of money you might be able to borrow for a home purchase. It is based on an initial review of your financial standing, including income, credit history, and assets. This document signals to sellers that you are a serious and qualified buyer, providing a clear understanding of your potential purchasing power before you make an offer on a property.
Standard Pre-Approval Period
A mortgage pre-approval remains valid for a period ranging from 60 to 90 days. Some lenders may issue letters with a shorter validity, such as 30 days. This timeframe ensures the borrower’s financial situation and market conditions, including interest rates, remain current.
After the pre-approval expires, the lender requires updated information to reassess your eligibility. This ensures the loan amount and terms remain appropriate for your financial health and the prevailing market.
Influences on Pre-Approval Validity
Several factors can impact the validity of a mortgage pre-approval. Changes in your personal financial situation are a primary concern for lenders. A job loss or a significant reduction in income directly affects your ability to repay a loan, potentially invalidating the pre-approval.
Taking on new substantial debt, such as a car loan, personal loan, or accumulating high credit card balances, can alter your debt-to-income ratio and reduce the amount you can borrow. Large purchases made on credit can also negatively impact your credit score, which lenders monitor. A decrease in your credit score can lead to less favorable loan terms or even a revocation of the pre-approval.
Beyond personal finances, external market conditions also play a role. Interest rates are subject to fluctuations, and a significant rise in rates could affect the affordability of the loan amount you were pre-approved for. Lenders’ underwriting guidelines can also change, which might necessitate a re-evaluation of your pre-approval even if your personal financial situation has remained stable.
Managing an Expiring Pre-Approval
If your mortgage pre-approval is nearing or has expired, contact your lender to discuss an extension or reapplication. The process involves providing updated financial documents. This includes recent pay stubs (last 30-60 days) and bank statements (past two to three months).
Lenders require updated tax documents, such as W-2 forms or 1099s for the last two years, to verify income. If self-employed, provide business tax returns, profit-and-loss statements, and balance sheets. You may also need to provide current statements for any other assets or debts, including retirement accounts, investment accounts, credit cards, or other loans.
The lender will conduct another credit check as part of this renewal. While multiple inquiries for a mortgage within a short timeframe count as a single inquiry on your credit report, it is a necessary step. After reviewing the updated information, the lender will issue a new pre-approval letter, which may include updated terms or an adjusted loan amount based on any changes in your financial profile or market conditions.