How Long Does a Mortgage Pre-Approval Last?
A mortgage pre-approval is an important step when preparing to buy a home, but it doesn't remain current indefinitely. Many mortgage pre-approvals are generally valid for about 60 to 90 days, although the exact timeframe can vary depending on the lender, loan program and borrower's circumstances.
If your home search takes longer than expected, an expired pre-approval doesn't necessarily mean starting over. In many cases, your lender can update your information and issue a new pre-approval after reviewing your current financial situation.
Understanding how long a mortgage pre-approval lasts—and what can affect it while you're shopping—can help you stay prepared when you find the right home.
What Is a Mortgage Pre-Approval?
A mortgage pre-approval is a preliminary evaluation of your finances to determine whether you may qualify for mortgage financing and approximately how much you may be eligible to borrow, subject to applicable underwriting requirements.
During the pre-approval process, a lender may review information such as your:
- Income and employment
- Credit history
- Assets
- Existing debts
- Debt-to-income ratio
- Funds available for the transaction
The lender may also request supporting financial documentation.
A pre-approval is not a final loan approval or a guarantee of financing. Final approval generally depends on additional underwriting requirements, the property being financed and confirmation that the borrower's financial circumstances continue to meet the applicable loan requirements.
How Long Is a Mortgage Pre-Approval Good For?
Many mortgage pre-approvals are generally valid for approximately 60 to 90 days, but there isn't one expiration period that applies to every lender or mortgage program.
Why does a pre-approval expire?
Because your financial situation isn't static. Income, employment, debt balances, assets and credit information can change while you're looking for a home.
A pre-approval that's several months old may therefore no longer accurately reflect your current financial circumstances.
What Happens If My Mortgage Pre-Approval Expires?
If your pre-approval expires before you find a home, you may be able to have it updated.
Your lender may ask for current financial information or updated documentation to confirm that you still meet the applicable qualification requirements. Depending on the circumstances, this could include updated income, employment, asset, debt or credit information.
If your financial circumstances haven't materially changed, updating a pre-approval may be relatively straightforward. However, changes in employment, income, debts, credit or available funds could affect the amount or type of financing for which you may qualify.
An expired pre-approval does not necessarily mean you are no longer eligible for a mortgage. It means your financial information may need to be reviewed again.
Will Renewing a Pre-Approval Require Another Credit Check?
Possibly.
Whether another credit report or credit inquiry is necessary can depend on how much time has passed, the lender's requirements and the loan program involved.
If your pre-approval is approaching expiration, ask your mortgage professional what will be needed to update it before authorizing new credit activity.
What Can Change My Pre-Approval While I'm House Hunting?
Receiving a pre-approval doesn't mean your financial profile is frozen until closing. Certain changes could affect your mortgage qualification.
While you're searching for a home, talk with your mortgage professional before making significant financial changes such as:
- Financing or leasing a vehicle
- Opening new credit accounts
- Increasing credit-card balances substantially
- Changing jobs or how you're paid
- Moving significant amounts of money between accounts
- Making a large purchase
- Co-signing a loan for someone else
Not every financial change creates a problem. The important thing is to discuss significant changes with your lender before making assumptions about how they could affect your financing.
Should I Get Pre-Approved Before I Start Looking at Homes?
For many buyers, getting pre-approved before seriously shopping for a home can be helpful.
A pre-approval can give you a better understanding of the price range and estimated financing you may be able to consider. It can also help identify documentation or qualification issues before you're under contract.
Your real estate agent can then help you focus your home search on properties that align with your financing and other homebuying goals.
If you're still several months away from purchasing, an initial conversation with a mortgage professional can also help you understand what steps to take before obtaining a formal pre-approval.
Pre-Approval vs. Pre-Qualification: What's the Difference?
The terms pre-qualification and pre-approval are sometimes used differently among mortgage companies.
Generally, a pre-qualification may involve an initial assessment based on information provided by the borrower, while a pre-approval may involve a more detailed review of financial information and supporting documentation.
Neither represents final mortgage approval.
If you're preparing to make an offer, ask your lender exactly what has been reviewed and what additional conditions will need to be satisfied before final loan approval.
How Can I Keep My Pre-Approval Current During a Longer Home Search?
If your home search lasts several months, stay in communication with your mortgage professional.
Let your lender know about meaningful changes to your employment, income, debts, assets or credit. You can also ask when your existing pre-approval is scheduled to expire so that updated documentation can be provided when necessary.
This is especially useful in a longer home search because your financing options and financial circumstances may change over time.
Frequently Asked Questions About Mortgage Pre-Approvals
How Long Does a Mortgage Pre-Approval Last?
Many mortgage pre-approvals are generally valid for approximately 60 to 90 days, although the exact period varies by lender, loan program and borrower circumstances.
Can I extend my mortgage pre-approval?
A lender may be able to update or renew a pre-approval after reviewing current financial information. The documentation required will depend on how much time has passed and whether your circumstances have changed.
Do I have to start over if my pre-approval expires?
Not necessarily. You may need to provide updated documentation and have certain information reviewed again, but an expired pre-approval doesn't automatically mean starting the entire mortgage process from the beginning.
Does getting pre-approved guarantee that I'll get the mortgage?
No. A pre-approval is not final loan approval or a guarantee of financing. Final approval is subject to underwriting, property requirements and verification that all applicable loan conditions have been satisfied.
Can changing jobs affect my mortgage pre-approval?
It can. A change in employer, occupation, compensation structure or employment status may require additional review. If you're considering changing jobs while buying a home, talk with your mortgage professional before making the change.
Can taking out a car loan affect my pre-approval?
Potentially. A new monthly debt obligation can affect your debt-to-income ratio and possibly the amount you qualify to borrow. It's a good idea to speak with your lender before taking on significant new debt while purchasing a home.
When should I get pre-approved for a mortgage?
Many buyers benefit from getting pre-approved when they're preparing to seriously begin their home search. If you're months away from purchasing, an earlier mortgage consultation can still help you understand your financing options and prepare for the eventual pre-approval process.
Ready to Start Your Home Search?
If you're considering buying a home in Maryland, Virginia, Washington, D.C., Delaware, North Carolina or Florida, Redwood Mortgage Services can help you understand your financing options and prepare for the mortgage process.
Whether you're ready for a pre-approval now or simply want to know what you should do before buying, we can review your situation and help you understand the next steps.
Ready to Discuss Your Options?
Schedule a consultation or get started with a mortgage application.
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