How long is a pre-approval good for? It’s a question on your mind if you’re seriously shopping for your first home. The typical pre-approval letter is valid for about 90 days. Timelines can vary by lender and circumstance. Pre-approval and pre-qualification are both positive steps to home ownership.
Do Pre-Approval Letters Have An Expiration Date?
The timing isn’t as rigid as you may think, but yes, most mortgage pre-approval letters will have an expiration date 2-3 months after issue. Here’s the thing, if you’re working with a top real estate team you will likely be in frequent communication with your lender. And might even request a new pre-approval letter for each offer you submit.
In a hot market you may want to show that you are approved for more than the home’s asking price, giving the seller confidence in your ability to secure your loan.
Or, perhaps you are trying to offer under asking price– you agent may advise you to ask your lender for a new pre-approval letter stating a lowered amount than you are actually pre-approved for. For example: If a home is listed at $350k and you offer $340k, you likely don’t want to submit a pre-approval letter showcasing that you can afford a loan of $450k.
Depending on the market and your agent and lending team, you will likely be in touch with your lender often. Once your initial information is submitted and your pre-approval letter is created it is simple to request a revised letter.
Can You Reuse A Pre-Approval Letter?
Yes, it’s frequently possible to reuse a pre-approval letter for home loans. If you have submitted the documents for a loan and had a pre-approval letter generated, you could potentially reuse that letter as long as the next offer isn’t higher.Â
What Happens If My Pre-Approval Expires?
If you haven’t had an offer accepted by the time your pre-approval letter expires, you’ll need to get an updated pre-approval from your lender. This is generally handled quickly via email. An expired pre-approval is easy to extend as long as your finances are stable- no changes in debt-to-income ratio, income, or the size of your down payment.
- Your lender will likely ask you to submit updated documents in order to have your pre-approval extended if it expires like recent pay stubs or bank statements.
- The lender is confirming that your finances haven’t changed in the past 90 days since your initial letter was issued.
- Most lenders won’t do hard pulls for updated pre-approval letters.
Pre-Approval Isn’t A Guarantee
A mortgage pre-approval doesn’t guarantee a loan origination. Your lender conducts a rigorous check of all financials during the closing process. If anything has changed since obtaining a pre-approval to disqualify you, you will be denied the loan.
