How Long Does Pre-Approval for a Mortgage Last?

A mortgage pre-approval is a preliminary assessment from a lender indicating how much money they might be willing to lend you for a home purchase. This document establishes a realistic price range for your home search, providing clarity on your borrowing capacity. It also signals to sellers and real estate agents that you are a serious and qualified buyer, which can be advantageous in competitive markets. While not a guarantee of a loan, it represents a conditional offer based on a review of your financial information.

Typical Pre-Approval Lifespan

Most mortgage pre-approvals are valid for a period ranging from 60 to 90 days. This timeframe is a common industry standard, allowing homebuyers a reasonable window to find a property while ensuring the financial information used for the assessment remains current. Lenders set this duration to account for potential shifts in the housing market and changes in economic conditions, such as fluctuations in interest rates.

A shorter validity period helps protect both the borrower and the lender from significant financial changes that could impact the loan terms or the borrower’s ability to repay. The 60 to 90-day window also provides enough time for the buyer to actively search for homes, submit offers, and potentially enter into a purchase agreement.

If the period were significantly longer, the financial picture of the borrower could change considerably, necessitating a complete re-evaluation. While this duration is prevalent, specific lenders may have slightly different standard policies regarding pre-approval validity, sometimes extending to 120 days depending on internal guidelines.

Influencing Factors on Pre-Approval Validity

Several factors can influence the continued acceptance of a mortgage pre-approval. Significant changes to a borrower’s financial situation are a concern, as they impact the initial assessment. This includes a job loss, a change in employment status, or a substantial decrease in income, which would alter the debt-to-income ratio.

Any new debt acquired after pre-approval, such as a car loan, new credit card balances, or other significant financing, can negatively affect the pre-approval’s standing. Such additions increase your overall debt obligations, potentially pushing your debt-to-income ratio beyond the lender’s acceptable limits. Similarly, late payments on existing credit accounts or new hard inquiries for credit can lower a credit score, potentially invalidating the initial pre-approval terms.

Lender-specific policies also play a role in pre-approval validity. Each institution manages its own risk assessment criteria. While many lenders follow similar guidelines, some may have more stringent requirements for re-verification or shorter internal windows before requiring an update, especially if market conditions suggest increased risk.

Broader market conditions, particularly rapid changes in interest rates, can significantly impact a pre-approval’s validity. If rates rise sharply, the amount a borrower was pre-approved for might no longer be affordable at the new rates, necessitating a re-evaluation of their borrowing capacity. Economic instability can also prompt lenders to adjust their risk assessments and pre-approval terms more frequently to mitigate potential losses.

Managing Expired Pre-Approvals

If a mortgage pre-approval is nearing its expiration date or has already passed it, proactive communication with the original lender is the first step. Contacting them in advance of the expiration allows for a smoother process of updating your financial profile and extending the pre-approval.

To renew a pre-approval, lenders will request updated financial documentation to re-verify your current standing. This commonly includes recent pay stubs for the last 30 days, and bank statements for the most recent one to two months, to confirm income and asset availability. These documents allow the lender to confirm that your financial situation remains consistent with your initial application.

The lender will also require authorization for a new credit check, which will result in a hard inquiry on your credit report. This allows them to assess any changes to your credit score or outstanding debts that may have occurred since the initial pre-approval. Providing these updated documents promptly helps expedite the re-evaluation process.

Once the updated information is submitted, the lender will re-evaluate your financial profile against their current lending criteria and market conditions. If your financial situation remains stable and meets their requirements, a new pre-approval letter will be issued. This updated letter will reflect current interest rates and terms.