If you are planning to buy a home, you might have heard about mortgage pre-approval. But you may wonder, how long is a mortgage pre approval good for? This is a very common question for people who are getting ready to shop for a house. A mortgage pre-approval helps you understand how much money a lender might let you borrow. It also shows sellers that you are serious about buying a home. But this approval doesn’t last forever.
In this blog, we will explain what mortgage pre-approval means, how long it is good for, and what you should do if it expires. We will use simple and easy language so that anyone can understand it without any confusion.
What Is Mortgage Pre-Approval?
A mortgage pre-approval is a letter from a bank or lender that says you are likely to qualify for a home loan. It is based on the information you provide, such as:
- Your income
- Your job
- Your credit score
- Your debts
- Your savings
The lender checks these details to estimate how much you can borrow and what kind of loan you may get. This process helps you know your budget before you start house hunting.
Also read: Which Best Describes the Difference Between Secured and Unsecured Loans?
Why Is Pre-Approval Important?
- It shows sellers that you are a serious buyer.
- It helps you know what price range to look for.
- It makes the home-buying process faster and easier.
How Long Is a Mortgage Pre Approval Good For?
Now, let’s answer the main question: how long is a mortgage pre approval good for?
In most cases, a mortgage pre-approval is good for 60 to 90 days (2 to 3 months). After this time, the approval may expire because your financial situation could change.
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Why Does It Expire?
Lenders want to make sure that your income, debts, job, and credit score are still the same. If anything changes, it could affect your ability to pay back the loan.
What Happens When Pre-Approval Expires?
If your mortgage pre-approval expires, you will need to get it renewed or apply again. This means you may have to:
- Submit new financial documents
- Go through a credit check again
- Talk to your lender once more
Lenders want to be sure that your finances are still strong before they offer a loan.
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How Can You Tell When Your Pre-Approval Will Expire?
When you receive your mortgage pre-approval letter, it will usually mention the expiration date. This is the last day your pre-approval is valid. Always check the letter or ask your lender so that you don’t miss the deadline.
If you’re getting close to that date and haven’t found a house yet, talk to your lender early. They can help you renew the pre-approval without too much delay.
What Documents Do You Need for Pre-Approval?
To get pre-approved, you usually need to provide the following:
- Proof of income (like pay stubs or tax returns)
- Proof of employment
- Credit history and score
- Bank statements
- Identification (like a driver’s license)
These documents help the lender understand your full financial situation.
Also read: How Does a Consumer Know Whether a Purchase May Be a Good Deal?
What Can Affect Your Pre-Approval?
Even if you get pre-approved, some things can affect or cancel your approval before it expires. Here are a few examples:
a. Job Loss or Change
If you lose your job or switch to a different one, your financial situation changes, and the lender may recheck your eligibility.
b. Taking on New Debt
If you take a car loan, use a credit card too much, or borrow more money, it could increase your debt and hurt your pre-approval.
c. Changes in Credit Score
If your credit score goes down due to missed payments or other issues, your lender might offer you a lower loan amount—or reject the loan.
Can You Renew a Mortgage Pre-Approval?
Yes, you can renew your mortgage pre-approval if it expires. This process is usually simple if your financial details have not changed much.
Steps to Renew:
- Contact your lender.
- Provide any updated documents (if asked).
- Allow a new credit check (if needed).
- Wait for the new pre-approval letter.
It’s a good idea to renew your pre-approval before the old one expires. This helps you avoid any gaps in your home search.
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Tips to Keep Your Pre-Approval Active
Here are some tips to make sure your pre-approval stays valid as long as possible:
- Avoid changing jobs.
- Do not open new credit cards.
- Do not take new loans or borrow large amounts.
- Keep paying your bills on time.
- Save money and avoid big purchases.
These small steps can help keep your financial profile strong, and your pre-approval valid.
Does Getting Pre-Approved Affect Your Credit Score?
Yes, getting a mortgage pre-approval can have a small effect on your credit score. When a lender checks your credit for pre-approval, it is called a hard inquiry. This can lower your score by a few points.
But Don’t Worry!
If you’re shopping around and getting pre-approvals from several lenders within a short time (usually 30 days), most credit scoring models will treat them as one single inquiry. So it won’t hurt your credit too much.
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Pre-Approval vs. Pre-Qualification: What’s the Difference?
Many people confuse pre-approval with pre-qualification. While both are useful, they are not the same.
Pre-Qualification:
- Based on simple information you provide.
- No official credit check.
- Not as strong as pre-approval.
Pre-Approval:
- Based on full review of your financial documents.
- Includes a credit check.
- More official and trusted by sellers.
If you’re serious about buying a home, pre-approval is the better option.
Also read: Explain How Renting or Buying a Home is Connected With Someone’s Ability to Be Generous?
What Should You Do After Getting Pre-Approved?
Once you have your pre-approval letter, here are the next steps:
- Start looking for homes within your price range.
- Work with a real estate agent.
- Keep your finances stable.
- Don’t make big financial changes.
If you find a home before your pre-approval expires, you can move ahead and apply for the actual mortgage.
What Happens If You Don’t Use Your Pre-Approval?
If you don’t use your pre-approval and it expires, nothing bad will happen. But you will need to reapply if you still want to buy a home. The lender may ask for updated documents and check your credit score again.
Remember, pre-approval does not mean you are forced to buy a house. It just shows what you might qualify for, based on your current finances.
Also read: What Type of Interest Rate is Locked in and Won’t Change for the Life of the Loan?
How to Choose the Right Lender for Pre-Approval?
Not all lenders are the same. Here are a few tips to choose a good one:
- Compare interest rates and fees.
- Read reviews online.
- Ask friends or family for recommendations.
- Look for good customer service.
- Make sure they offer quick processing.
Choosing the right lender can make your pre-approval and home-buying process smoother.
Final Checklist for Mortgage Pre-Approval
Before applying for pre-approval, make sure you:
- Know your credit score
- Have your financial documents ready
- Understand your budget
- Avoid taking new loans
- Choose a trusted lender
- Know the expiration date of your pre-approval
This checklist will help you be better prepared and more confident during your home search.
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Conclusion
So, how long is a mortgage pre approval good for? The answer is usually 60 to 90 days. This time gives you a chance to search for a home and make an offer with the backing of your lender. If your pre-approval expires, you can always renew it by providing updated financial information. Just remember to keep your finances stable, avoid big changes, and work closely with your lender.
A mortgage pre-approval is a powerful tool that can help you move forward in your home-buying journey. It brings you one step closer to becoming a homeowner with confidence and clarity.