How Long Is a Mortgage Preapproval Good For?

A mortgage pre-approval is a conditional commitment from a lender, indicating how much they will lend for a home purchase. This assessment reviews your income, assets, and credit history. Obtaining a pre-approval is a significant step for home shoppers, demonstrating to real estate agents and sellers that you are a qualified buyer. It provides a clear understanding of your borrowing capacity before actively searching for a home.

Standard Pre-approval Validity

A mortgage pre-approval typically remains valid for 60 to 90 days. This duration allows lenders to operate with current financial information, crucial given dynamic interest rates and lending guidelines. Lenders assess your recent credit report, income statements, and asset verification for eligibility. While a pre-approval offers a strong estimate of your borrowing power, it is not a final loan commitment; full approval requires meeting all outlined conditions and completing the underwriting process.

Factors Affecting Pre-approval Validity

Various circumstances can impact a pre-approval’s validity or terms. Significant changes in your financial situation, such as job loss, reduced pay, or new debt like a car loan or increased credit card balances, can lead to a re-evaluation. Large credit purchases or substantial asset changes also necessitate a fresh look at your financial health.

Fluctuations in your credit score can also influence your pre-approval status. Activities that negatively affect your credit score, including missed payments, new credit inquiries, or opening new lines of credit, may cause your lender to reassess creditworthiness. Shifts in market conditions, such as significant changes in interest rates or evolving economic conditions, can impact lending criteria and potentially alter your pre-approval terms. Lenders may also update their internal underwriting guidelines or product offerings, which could lead to a re-evaluation of your initial pre-approval.

Renewing Your Pre-approval

If your home search extends beyond the initial validity period of your pre-approval, or if your financial situation undergoes significant changes, proactive renewal becomes important. Contact your original lender as the expiration date approaches to discuss the renewal process. Renewal typically involves updating your financial documentation, including recent pay stubs, bank statements, and potentially updated tax returns.

Your lender will likely conduct a new credit check as part of the renewal to ensure your credit profile remains consistent. This re-evaluation allows the lender to assess your application based on current financial information and prevailing market conditions. A successful renewal results in a new pre-approval letter, reflecting updated terms and an extended expiration date, allowing you to continue your home search.