How Long Is a Mortgage Preapproval Valid For?

A mortgage pre-approval is a conditional commitment from a lender, outlining how much they are generally willing to lend for a home purchase. This is based on an initial review of your financial standing, including income, assets, and credit history. Its purpose is to provide homebuyers with a realistic understanding of their purchasing power. It also demonstrates to sellers that a buyer is serious and has preliminary financial backing for an offer.

Understanding Pre-Approval Validity

A mortgage pre-approval comes with a specific expiration date, often ranging from 30 to 90 days. Some lenders may offer periods as long as 120 days. This limited validity exists because the financial information used for the pre-approval is a snapshot in time.

Your income, assets, credit score, and market conditions like interest rates can fluctuate. Lenders must ensure the financial picture remains accurate. An expired pre-approval means the conditional commitment is no longer valid, requiring an update or reapplication if you have not yet found a home.

The pre-approval letter specifies its expiration date, making it important to note this timeframe. This period gives you enough time to actively search for a home and make an offer. Obtaining a pre-approval when ready to begin house hunting helps align its validity with your search timeline.

Factors Influencing Pre-Approval Duration

Several elements can affect a pre-approval’s validity or necessitate an earlier re-evaluation. Lender policies vary; one lender might offer a 30-day pre-approval while another provides a 90-day period. Confirm the specific duration with your chosen lender.

Changes in your financial situation can impact a pre-approval, even before its stated expiration. For example, job loss, new substantial debt like a car loan, or large credit purchases can alter your debt-to-income ratio. A drop in your credit score, due to missed payments or new credit inquiries, could also affect the terms of your pre-approval or invalidate it.

Beyond personal finances, broader market conditions can also play a role. Shifts in interest rates, for instance, might change the loan amount you qualify for or the terms offered. Lenders base pre-approvals on prevailing rates; if those rates change significantly, an update to your pre-approval may be necessary. These shifts highlight why pre-approvals are time-sensitive documents.

Renewing or Re-Applying for Pre-Approval

If your pre-approval is nearing or has expired, contact your original lender. They can guide you through their renewal process. The lender will require updated financial documentation to verify your current financial standing.

This involves providing recent pay stubs, updated bank statements, and new tax returns if a new tax year has passed. The lender will also conduct another credit check to assess your current credit score and history. This re-evaluation ensures the lender has the most up-to-date information before re-issuing a new pre-approval or extending the existing one.

Timely communication with your lender is advisable if your home search extends beyond the initial pre-approval period. Renewing your pre-approval ensures financial readiness and avoids delays in the home-buying process. While a new credit inquiry might slightly impact your credit score, multiple inquiries for mortgage purposes within a short timeframe are grouped and treated as a single inquiry by credit bureaus, minimizing the overall effect.