How Long Is a Mortgage Pre-Approval Good For?

A mortgage pre-approval is a lender’s conditional commitment to provide a home loan up to a certain amount, based on a preliminary review of a borrower’s financial standing. This document demonstrates financial readiness to sellers and helps establish a realistic budget for property searches. A pre-approval signifies that a lender has assessed a borrower’s creditworthiness and ability to repay a loan, offering an estimated loan amount and potential terms. It signals seriousness to real estate agents and sellers in a competitive market.

Standard Pre-Approval Validity Period

A mortgage pre-approval remains valid for 60 to 90 days. Some lenders may issue pre-approvals with a shorter 30-day limit, while others might extend it to 120 or even 180 days, depending on their policies. This common timeframe exists because a borrower’s financial situation, credit history, and market interest rates are subject to continuous change. Lenders use this period to ensure their assessment is based on current financial information, reflecting recent income, debt, and credit status.

The expiration date accounts for these dynamic factors, as older financial data can become unreliable for evaluating a borrower’s capacity to repay a loan. This helps ensure the lender’s determination of borrowing capacity remains accurate. It is advisable to obtain a pre-approval when ready to commence a home search.

Key Factors Influencing Pre-Approval Validity

Several circumstances can impact the validity of a pre-approval, potentially causing it to expire sooner or necessitating a re-evaluation. Significant changes to a borrower’s financial situation are common reasons for a re-assessment. For instance, a decline in credit score due to new debt or missed payments can alter a lender’s risk assessment. Taking on new large financial obligations, such as a car loan, student loan, or substantial credit card debt, can negatively affect the debt-to-income ratio.

Changes in employment status, such as job loss or transitioning to self-employment, also require re-evaluation as they directly affect income stability. Fluctuations in market interest rates can impact the amount a borrower qualifies for. If interest rates rise significantly, the original approved loan amount might decrease, prompting a new assessment. Lenders will require updated financial documents, like pay stubs and bank statements, and becoming outdated can trigger a re-evaluation.

Extending or Revalidating Your Pre-Approval

If a mortgage pre-approval is nearing its expiration or has already expired, the process of extending or revalidating it involves providing updated financial documentation. Lenders will require current information to reassess eligibility and confirm that a borrower’s financial health aligns with their lending criteria. This includes recent pay stubs, updated bank statements, and the latest tax returns.

To initiate the renewal process, borrowers should contact their original lender to inquire about their policy for extensions. The lender will guide them on submitting the updated financial information, often through a secure online portal, email, or in-person submission. After submission, the lender will review the updated documents, potentially conduct a new credit pull, and then issue a new pre-approval letter with updated terms if approved. This streamlined process often takes less time than the initial application since much of the borrower’s information is already on file.