How Long Does a Pre-Approval Last | A guide for mortgage seekers

In today's competitive real estate market, a mortgage pre-approval can put you at a significant edge. Believe it or not, buyers with pre-approval are significantly more likely to have their offers accepted than those without.

So, how long does a pre-approval last?

Most mortgage pre-approvals are usually good for 60 to 90 days, but that's not all. Your actual home loan pre-approval timeline depends on a lot of things: your lender, as well as the change in your financial status. In this guide, we are going to discuss everything to maximize the validity of your pre-approval and have an easy ride in buying a house.

What is a Mortgage Pre-Approval? 

A mortgage pre-approval is a lender's conditional agreement that you're eligible for a particular loan amount based on an in-depth review of your financial situation. 

It serves as a green light to start house hunting, assuring you of financial backing for your offer. Unlike a casual estimate, a pre-approval mortgage includes an in-depth review of your credit, income, and assets, providing more certainty to you and sellers.

Why it matters: For first-time buyers, pre-approval demonstrates to sellers that you are serious and financially capable of closing the deal, giving you an edge in competitive bidding scenarios.

Knowing the difference is important, especially if you want a competitive edge. In choosing to go for pre-approval, you're one step closer to that ideal home.

How Long Does a Pre-Approval Last?

If you’re planning to buy a home, understanding how long a mortgage pre-approval lasts is crucial to ensure your home-buying process goes smoothly. 

In most cases, mortgage pre-approvals are valid for 60 to 90 days, but the specifics can vary depending on the lender, loan type, and individual financial circumstances.

Most lenders guarantee that pre-approvals are valid for 60 to 90 days. This takes the notion that your financial standing and market conditions will persist without significant changes within those periods. However, some providers issue their pre-approvals with shorter or longer validity times based on their policies.

Some of the Major Examples 

Rocket Mortgage

Pre-approvals are usually valid for 60-90 days, which ensures there is enough time for looking at a home while holding on to the pre-approvals.

Bank of America

Issues pre-approvals are valid for 60 days, which in a competitive market ensures buyers respond promptly.

Chase Bank

Provides a 90-day window for pre-approval, but they do encourage check-ups to ensure that changes in their finances are updated.

Breaking It Down by Loan Type

1. Conventional Loans

• Conventional loan pre-approvals generally are valid for 60–90 days
• More flexible and thus popular for both first-time and seasoned investors

2. FHA Loans

• Pre-approval validity periods are usually the same as regular loans at 90 days, but the documentation for renewal of these loans is more rigorous.

3. VA Loans

• Pre-approvals for VA loans are usually valid for up to 90 days.
• They are accommodating for veterans who may need extra time because of special circumstances, such as relocations.

First-Time Buyers vs. Seasoned Investors

First-Time Buyers

They often rely very heavily on their pre-approval to guide them, as it gives them a sense of budget and credibility when bidding on homes. The 60-90-day timeline is particularly critical for them, as financial changes such as a new credit card or job could void their pre-approval.

Seasoned Investors

Generally have more experience, they are likely to avoid a problem with pre-approval but may need to renew if market conditions change or if they're buying in areas where the value of properties fluctuates.

Case Example: The Role of Timing

First-time buyer Sarah was excited to receive her pre-approval good for 90 days in March. She had diligently hunted homes and finally found the perfect one listed in June. However, now she faces the misfortune of losing her pre-approval just one week before she finally sees the perfect house. Sarah has lost time, and because renewal isn't possible, her offer is placed at a disadvantage against others.

Factors That Can Affect Pre-Approval Validity

Your pre-approval letter is not set in stone. While lenders give you a time frame — usually 60 to 90 days — several factors can cause your mortgage pre-approval to expire or force you to update it before it does. Knowing these factors will help you keep your pre-approval status and not have it affect your home-buying process.

Financial Factors

1. Income Changes

Reducing income or switching jobs might influence the length of validity of the pre-approval letter. For example, a low-paying job switch must communicate the change to your lender to ensure your pre-approval mortgage is valid.

2. Moving Regarding Credit Score Change

Your credit score is a critical factor that determines your qualification. A missed credit card payment or acquisition of new debt lowers your credit score, putting your pre-approval in danger.

3. Debt-to-Income Ratio

Big-ticket purchases, such as a car, can affect your DTI ratio, which may disqualify you for the amount in your pre-approval letter.

External Factors

1. Market Conditions

Interest rates are going up, and it can change the amount you qualify for, reducing the amount of your home loan pre-approval.

Housing markets, such as California, tend to be volatile, causing home prices to fluctuate. You may need to update your pre-approval.

2. Regional Differences

In stable market areas, such as the Midwest, the validity of your pre-approval may be fine. However, in high-demand areas, lenders will often reassess property values and financing options more frequently, which shortens the effective duration of your pre-approval.

Real-Life Scenario

James, a buyer in Texas, got a 90-day pre-approval mortgage. Halfway through the process, he co-signed a car loan for a family member. This added new debt to his books, pushing his DTI ratio over the lender's threshold, thereby invalidating his pre-approval just when he was about to make an offer on the house. James had to delay his purchase and reapply for a lower loan amount, thereby losing out on his desired property.

It’s important to note that timing isn’t the only factor affecting pre-approval duration. Financial and external conditions usually help determine whether the condition stays valid or not, keeping your pre-approval ready for when you require it. To better understand how your financial profile influences your pre-approval, try our free affordability calculator.

By tracking these factors, you’ll be better prepared to navigate changes in the market and your finances, keeping your home-buying process on course.

What to Do When a Pre-Approval Expires

Does pre-approval expire? The answer is a resounding yes. 

Don’t worry, though! If your pre-approval mortgage expires before you close your dream home. Renewing a pre-approval is straightforward, and lenders are used to supporting buyers through the renewal process. 

Here's how it works.

Steps After Pre-Approval Expires

1. Call your lender

Contact your lender to tell them that your pre-approval letter has expired and you would like to renew your pre-approval mortgage. They will walk you through what is next.

2. Present your updated financials

Lenders will ask for your most recent financial documents, such as pay stubs, tax returns, and bank statements. These updates ensure that your loan eligibility has stayed the same since your initial pre-approval mortgage.

3. Interest rate changes

Mortgage rates change. In the renewal process, your lender will update your loan terms based on the current interest rate. This may change your loan amount or monthly payments, so be sure to review the changes.

4. Renew expired pre-approval

Once your financials have been reviewed and updated, your lender will issue a renewed pre-approval letter, good for another 60–90 days.

Frequently Asked Questions About What Happens When Pre-Approval Expires

1. Does renewing a pre-approval hurt my credit score?

Renewing a pre-approval mortgage may involve a hard credit inquiry, which can temporarily lower your score by a few points. But if you keep up on payments, the impact is minimal and short-lived.

2. Can I get better terms at renewal?

Absolutely! If your financial situation has improved, such as earning a higher income or having reduced debt, you may be eligible for better loan terms, such as a reduced interest rate or increased loan amount. Discuss these options with your lender.

If your pre-approval has expired, renewing is simpler than you think! Begin by getting a fast quote here to discover what your new options are.

How to Maximize the Validity of Your Pre-Approval

When you're buying a home, keeping your pre-approval valid can prevent delays and surprises. Here's how to keep your pre-approval valid as long as possible so that you can shop for your home without unnecessary stress.

Here are some practical tips for keeping pre-approval valid. 

Practical Tips to Maximize Pre-Approval Validity

1. Keep credit inquiries to a minimum

Every time you apply for credit, whether it is a new credit card or a car loan, that will generate a hard inquiry on your credit report. This hurts your credit score, potentially hurting your pre-approval. Apply only when you must - after closing on your home.

2. Avoid large financial changes

Financial changes during pre-approval may affect your home loan pre-approval. Taking on new debt or liquidating savings are examples of these changes. Maintaining stability in your financial situation ensures your pre-approval remains intact throughout your home search.

Things to Avoid To Keep Your Pre-Approval Valid

1. Don't change jobs without letting your lender know

Job changes can complicate your loan process, especially if the change affects your income or job history. If you have to change jobs, advise your lender as soon as possible so that it does not cause complications with your pre-approval mortgage.

2. Avoid big deals

Purchasing a new car, furniture, or other big-ticket items can impact your debt-to-income ratio, a key factor lenders closely review. Such purchases can cancel out your pre-approval letter, especially if you apply for financing on the items.

Why These Steps Matter for Pre-Approval Longevity

Understanding how long a pre-approval lasts is vital to staying within your home-buying timeframe for mortgage pre-approval. By following these dos and don’ts, you’ll help ensure that your pre-approval remains valid throughout your search for the perfect home. Financial stability is key. One big change — whether it’s applying for new credit or switching jobs — can shorten the lifespan of your pre-approved mortgage.

For instance, a first-time homebuyer might be tempted to purchase a new car after receiving pre-approval. However, this could jeopardize their financing by altering their debt-to-income ratio and potentially leading to denial of their mortgage. 

Frequently Asked Questions

1. How long are pre-approvals good for?

Mortgage pre-approvals generally have a validity of 60 to 90 days. The validity may depend upon the lender and the type of loan you are applying for.

2. What is the validity of preapproval?

The validity of your pre-approval depends upon your financial status, changes in interest rates, and the condition of the market. Keep in touch with your lender for the up-to-date validity of your pre-approval.

3. What is the longest pre-approval?

While most pre-approvals last 60 to 90 days, some lenders may extend the period under specific circumstances. Always check with your lender about the validity period of your pre-approval.

4. Does pre-approval mean you are approved?

No, pre-approval is not the same as final loan approval. It's more like an initial assessment of the willingness of a lender to lend you a particular amount based on your financial condition. Final approval happens after all necessary scrutiny over the application and documentation of the property in question.

Conclusion and Next Steps

Understanding how long a pre-approval lasts and the factors influencing its validity can make or break the home-buying process. Staying financially stable, avoiding large purchases, and keeping in contact with your lender will all ensure that your pre-approval mortgage lasts throughout your search.

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