How Long Does a Pre-Approval for a Mortgage Last?

A mortgage pre-approval is a foundational step for home buyers. This formal document from a lender assesses a borrower’s financial capacity and willingness to extend credit. It provides a clear understanding of an affordable price range, streamlining the property search. It also signals to sellers and real estate agents that a buyer is serious and financially capable, making offers more credible.

Standard Pre-Approval Validity Period

A typical mortgage pre-approval is valid for 60 to 90 days. Lenders establish this timeframe because financial circumstances and market conditions can shift rapidly. A borrower’s credit score, income, employment status, or new debt obligations could change. Lenders require current financial information to accurately assess risk and determine loan eligibility.

Interest rates in the mortgage market are subject to frequent fluctuations. A pre-approval issued at one interest rate might not reflect current market conditions later, impacting the borrower’s affordability and the total loan amount they qualify for. The 60 to 90-day window allows a reasonable period for a home search while ensuring financial data remains relatively fresh. This standard period helps protect both the borrower from unexpected changes in loan terms and the lender from unforeseen risks.

Factors Affecting Pre-Approval Validity

Several circumstances can cause a pre-approval to become invalid or necessitate re-evaluation, even within its standard validity period. Significant changes to a borrower’s financial situation are primary concerns for lenders. For example, a job loss, a substantial decrease in income, or a change in employment status can directly impact loan repayment ability. Taking on new, sizable debt (e.g., car loans, student loans, or significant credit card balances) increases a borrower’s debt-to-income ratio, which lenders closely monitor.

Large purchases or opening new credit accounts can also negatively affect a credit score, potentially disqualifying a borrower from the previously approved terms. Rising interest rates can also render a pre-approval less accurate. If rates increase significantly, the monthly payment on the pre-approved loan amount might become unaffordable, prompting the lender to reassess the maximum loan amount. Lender policies also play a role, as some institutions may have stricter requirements for re-evaluating pre-approvals based on internal risk assessments or regulatory changes.

Updating or Re-Applying for Pre-Approval

If a pre-approval is nearing its expiration date, has expired, or requires adjustment due to financial changes, the homebuyer must contact their lender. The process typically involves submitting updated financial documentation. This commonly includes recent pay stubs (30-60 days) and bank statements (past 60 days). Lenders may also request updated tax returns if there have been significant changes in income sources or employment.

A renewed credit check is an integral part of this update process to ensure the borrower’s creditworthiness has not declined. Based on the updated information, the lender can then issue an extension of the existing pre-approval, provide a new pre-approval letter, or revise the pre-approved loan amount. This re-evaluation ensures that the pre-approval accurately reflects the borrower’s current financial standing and market conditions.

Pre-Qualification Versus Pre-Approval

Understanding the distinction between mortgage pre-qualification and pre-approval is important. Pre-qualification offers a general estimate of borrowing capacity, based on self-reported financial information. This initial step does not involve a review of financial documents or a credit check, making it a less formal assessment. It serves as a preliminary guide to gauge potential borrowing capacity.

In contrast, a mortgage pre-approval is a more thorough assessment of borrowing power. This process requires submitting verifiable financial documents, such as income statements, bank statements, and tax returns. A pre-approval involves a “hard credit pull,” where the lender checks credit history and score. This verification provides a stronger indication of eligibility and the specific loan amount, making it a more compelling signal to sellers in a competitive housing market.