How Long Does A Pre Approval Last?

Whether you want to refinance your mortgage or buy a new home, it is important to get a mortgage pre-approval. It is the most crucial part of this process.

Speaking about a preapproval letter, this is one of the most important financial documents from the lender. The pre-approval letter shows the final loan amount you can borrow from the mortgage lender.

Besides, the mortgage pre-approval letters also show the mortgage options, mortgage rates, and loan offers available for you. However, you should be clear about how many houses or how big a house you want to buy before applying for it.

However, you should remember that a mortgage pre-approval letter is only valid for a limited period. So, the experts suggest understanding the property buying timeline and taking advantage of your mortgage preapproval letter while it lasts. Now, let’s discuss a pre-approval mortgage in detail and understand the pre-approval process.

What Do You Mean By Mortgage Pre Approval?

There is no doubt that buying a property, especially a good one, is costly. That’s why most home buyers take the help of lenders to get a mortgage loan.

If you are dealing with such a financial situation and want help, you need to get a mortgage pre-approval letter. With this, you can understand how much you can borrow to buy your home.

You should remember that mortgage pre-approval is different from mortgage pre-qualification. The pre-approvals process considers different factors- for example, your financial situation.

The mortgage broker may check your credit report or credit scores, bank statements, assets, income, and such data to ascertain how much mortgage loan you can take.

Having a good credit history is important as this can affect the interest rate for the loan. If the credit check shows you have a good credit history, the interest rate can be low.

How To Get A Mortgage Pre Approval Letter From A Reliable Mortgage Lender?

A professional mortgage calculator is advisable before getting a new pre-approval letter. It can help you to know the possible amount that you can borrow.

If you have all the required documents, you can get pre-approved for a mortgage within a few minutes. To get your pre-approved mortgage application, make sure you have the following things:

  • Your social security number
  • Latest credit report
  • Employment status proof
  • Your recent pay stubs
  • Recent bank statements
  • Required income tax returns forms and business tax returns forms.

Besides, if you are getting a down payment from other sources, you must submit the proof to begin your pre-approval process.

A pre-approval letter will prove that the lender or loan officer has already screened you. A pre-approval letter will offer you a competitive edge in your home buying process in this competitive market. Now, most real estate agents and sellers consider this.

Once you submit all these documents, the lender will begin the pre-approval process and issue a letter stating the mortgage amount you can take. Multiple lenders or brokerage services are now offering this facility to make the process of house hunting comfortable for people.

What Is The Expiration Date Of Mortgage Pre Approvals?

How long does a mortgage last? As per the experts, mortgage preapprovals’ shelf life is 90 days. Now, you might be wondering why?

Dan Green Don Green, a former loan officer who also has appeared in the Wall street journal and U.S. World Report, has said that interest rate changes frequently. Besides, credit score also changes every month based on repayment behavior.

These things can influence your financial situation and the total amount for home loans. So, if you are still in your house hunting process and the pre-approval letters are about to expire, you can get in touch with any professional mortgage experts, like the Equal Housing Lender, to get a new one. Well, another new application and soft credit pull will be required to get a new one.

The lenders will also re-verify the applicants’ finances before finalizing the mortgage. The lenders evaluate the final amount after an extensive review and the underwriting process.

You should avoid any job change, buy a credit card, and lower your savings to prevent last-minute issues.

How Can Your Credit Report Affect Your Mortgage Amount?

Before applying for your desired mortgage, most mortgage pre-approval lenders will use your credit reports to get all the reliable information to understand your repaying habits.

The lenders will get an understanding of the applicants’ current financial situation.

It may be possible to avail a mortgage without a credit report, but the approval process will be harder for you. So, make sure that you have a good credit record.

Pre-Approval Vs. Pre-Qualification

A pre-approval is a process of careful and extensive analysis of your financial history and your credit check. That allows the lenders to offer a certain loan amount to buy a house. Before buying a home, experts will suggest you get pre-approved.

On the other hand, pre-qualifications mean estimating the mortgage you can take based on your credit scores and income. But there will be no guarantee that you will get that amount.

Compared to getting pre-approval letters, pre-qualifications are much more convenient.

But remember that when you get pre-approved, you can make sure that you qualify for the mortgage process and get the amount to buy your new home. Besides, this can prove to the real estate agents that you are in a good position to buy the house.

Advantages Of Getting Pre Approved

Getting pre-approval from different mortgage lenders will help you understand your refinancing or homebuying budget.

If you start looking for a home without a pre-approval letter, you may end up with a home out of your current budget. Well, here is why this matters during your home hunting.

Confidence In The Budget

You will understand your loan options, amount, and rates when you get pre-approved. As a result, you can search for properties under that price range. You will save a lot of time with this.

Lenders And Agents Consider This Seriously

This letter signals to the lenders that you will be able to handle the mortgage.

You Will Save Time During Refinancing Or Financing

This financial document can help you understand your financing ability, and you will have a 100 percent accurate estimate of refinancing or buying costs.

Should You Go For Multiple Preapproval Letters?

You can get multiple pre-approval letters from different lenders, but this can affect your credit score.

As the loan providers or lenders carry out a credit check every time you ask for a pre-approval, financial institutions will think that you are desperately looking for loans. It is also known as a hard inquiry and can lower the score.

A home buyer should always apply for this when actively in the home buying process. But you should keep the expiry of the document in your mind. Make sure that you can be ready to finalize a deal within 60 to 90 days.

Types Of Preapproval Letters Offered By A Lender

Well, a reliable lender can offer you two different types of letters. One is the basic pre-approval letter, and another is a verified letter.

The basic letter will be based on your soft credit pull and monthly income. Lenders will not analyze any other documents. It is good for having a general sense of how much a home buyer can afford, and it also works in some markets where the sellers don’t ask for fully vetted documents.

To get a verified letter, you need to submit all the required documents, like your tax returns, pay stubs, statements, and more.

After analyzing these, the experts will suggest a certain amount that you can borrow. The opinions expressed in the letter can help you with your home buying budget.


So what are you thinking now? Get in touch with a mortgage service provider and get pre-approved to enjoy a better mortgage rate.

Buying a perfect home is an amazing venture. But if you don’t know when you should apply for a pre-approval or get pre-approved, you can take the help of your real estate agent to make the pre-approval process easier for you.

Getting pre-approved for a mortgage is a better way to become the owner of your dream house, as you can easily get a house loan. Just make sure you have a good credit score and meet all the requirements to get started with this.


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