How long does mortgage preapproval last?
Quick insights
- Mortgage preapproval typically lasts 30 to 60 days, giving you a time frame to search for a home based on your current financial situation.
- This time frame will vary by lender, and if your preapproval expires, you must reapply with updated financial documents.
- It may be a good idea to avoid taking on new debts or making large purchases during your home search to ensure your preapproval remains valid and accurate.
If you’re diving into the homebuying process, you’ve likely heard about mortgage preapproval. It's a step in making you a more prepared and competitive first-time homebuyer, but when does preapproval expire?
Understanding how long a mortgage preapproval lasts can help you avoid setbacks. To stay prepared during your home search, ensure your preapproval remains valid. Let’s break down the key points to keep your homebuying journey on track.
What is a mortgage preapproval?
Simply put, mortgage preapproval is a lender’s way of saying you’re financially qualified to borrow a certain amount to buy a home. Getting a preapproval letter involves a review of your credit history, income, assets and debts. Having a mortgage preapproval could give you an advantage in the homebuying process, showing sellers that you’re a serious and prepared homebuyer.
Mortgage preapproval is not a final loan approval. A lender must approve a mortgage loan at specific terms when you’re ready to purchase a home. Your application and property must meet the loan provider’s requirements before a loan is officially approved.
When should I get preapproved for a mortgage?
Getting preapproved before making an offer on a home can be useful. The process helps you understand your budget and potentially strengthen a purchase offer. But you don’t have to wait to start exploring properties. You can tour homes before obtaining preapproval to clarify your must-haves and nice-to-haves.
Example scenario
Imagine you spot your dream home online and want to check it out right now. You can visit the house even if you haven’t started the mortgage paperwork yet. If you start the preapproval process at the same time, you can be ready to act quickly if you decide to make an offer.
How long is a mortgage preapproval good for?
A mortgage preapproval typically lasts between 30 and 60 days, depending on the loan provider. Changes in the housing market or lender policies could also impact the duration of your preapproval. The general shelf-life is based on the time-sensitive factors that affect mortgage loan terms. Those include changes in a borrower’s financial situation, interest rate fluctuations and real estate market conditions.
What happens if my preapproval expires?
If your mortgage preapproval expires, you may want to apply for a new one before continuing your home search. This usually involves providing updated financial documents and undergoing another hard credit check. While multiple inquiries could impact your credit score, all of them being mortgage-related within a certain period may not have the same negative impact.
How to renew your mortgage preapproval
Renewing your preapproval letter keeps your home search on track and ensures you are still qualified for a loan. Staying updated shows sellers you are ready to buy right now. Here’s how you can typically renew:
- Contact your lender: You can usually start the process online, over the phone or in person. The lender will look at your old application to see what needs to be updated.
- Provide fresh documents: Even if your job hasn't changed, you will likely need to share your most recent pay stubs, bank statements and tax forms.
- Prepare for a credit check: The lender may need to check your credit score again. This confirms your credit health and preapproval terms.
- Keep your finances steady: During the renewal period, keeping income and debt levels the same can be helpful. This might mean avoiding new credit cards, taking out big loans or moving large amounts of money between accounts.
- Get your new letter: Once the lender approves the update, they may issue a new preapproval letter. This is typically good for another 30 to 60 days.
Why a valid preapproval matters
An active preapproval letter can be a strong tool in a competitive market. It proves to sellers that you can afford their home, which makes your offer stronger. Keeping it current also protects your “buying power” and may renew a rate lock or other preapproved loan terms.
In summary
A mortgage preapproval gives you a head start in the homebuying process, but it doesn’t last forever. Preapprovals are generally valid for 30 to 60 days, so it’s important to know the expiration date as you search for homes. If your preapproval expires, renewing it may require updated documents and another credit check.
Getting preapproved online can help you see what’s affordable and prepare you to make an offer. To help with a home search, consider working with a Chase Home Lending Advisor.
