How Long Does a Mortgage Preapproval Last?

Getting a preapproval on a mortgage is one of the many things you need to do when you are planning to buy a home. With a preapproval, you show the seller that your financial situation is stable and that you are serious about buying the property. That is why having a preapproved mortgage is such a good step.
Keep reading as we answer one of the most asked questions regarding preapproved mortgages: how long is a preapproval valid, and when does it expire?

Mortgage Preapproval: What Is It?

A preapproval is a letter issued by your lender that states the amount they are ready to lend you as a home loan. The letter also mentions the loan type that the lender is willing to offer.

To prepare this letter, lenders review all relevant financial information. They compare your assets and income against your debts, and then decide how much they can safely approve for your loan.

It’s important to note that mortgage preapproval is different from mortgage prequalification. Prequalification comes before preapproval and only provides an estimate of the loan amount you might qualify for. In most cases, lenders do not dig deeply into your finances at this stage. Preapproval, however, is more thorough and carries more weight.

A mortgage preapproval is one of the best tools to show sellers that you are serious about buying.

What Financial Records Do Lenders Check Before Preapproval?

Lenders typically ask for specific financial documents before issuing a preapproval. These include:

• Bank account statements
• Pay stubs
• Credit reports
• Credit card details
• Tax returns
• Debt records, including student loans
• Details of assets such as stocks, bonds, or real estate
• Retirement account statements (401(k), IRA, etc.)
• Records of any other financial obligations

All these details help lenders calculate your debt-to-income (DTI) ratio, which is one of the most important factors they consider. The DTI ratio shows whether you can handle monthly mortgage payments on top of your existing debts. It also helps lenders see the interest rate you qualify for.

What Is the Significance of a Mortgage Preapproval?

With a preapproval, lenders issue a letter that includes a date and loan details. You can present this letter when making an offer on a home.

Here’s why the letter matters:

• It shows the seller you have a lender willing to provide the loan.
• It confirms you have the funds needed to buy the home.
• Since lenders have already reviewed your finances, it serves as proof of financial stability.
• It can speed up the mortgage process, as underwriters already have access to your details.
• It gives you an edge over buyers who don’t have preapproval.

What Is the Process of Getting a Mortgage Preapproval?

To get a mortgage preapproval, you can either meet a loan officer in person at a bank or financial institution or fill out the application form online. Documents typically required include:

• Government-issued photo ID (passport, driver’s license, or state ID)
• Social Security number
• Proof of employment
• Proof of income
• Additional income sources
• Federal tax returns from the past two years
• Bank statements
• Proof of residence
• List of monthly expenses
• Debt records
• Asset statements
• Credit history
• Real estate records (if applicable)

As part of the process, the lender will carry out a hard credit inquiry. This might lower your credit score by a few points temporarily, but it is nothing to worry about. The drop is usually minor. You can also apply to multiple lenders within the same timeframe, and it will count as a single inquiry.

What Should You Do Before Getting Preapproved?

A little preparation will make the process easier:

• Review your credit report. Your credit score is a key factor. Most mortgages require at least a 620 score. Check your report for free, fix any errors, and work on improving it if needed.
• Watch your DTI ratio. Aim to keep it below 36%. Different lenders may have different cutoffs, so always check their specific requirements.
• Organize your paperwork. Make sure all your documents are up to date. If part of your down payment comes as a gift, let your lender know.
• Consider multiple lenders. Applying with several lenders within the same time window will not hurt your credit score, but it will give you more choices later.

How Much Time Does Preapproval Take?

If your documents are in order, some lenders can issue a preapproval the same day. Others may take a few days to review your details, such as credit history, income, and debts.The best way to avoid delays is to meet with the lender first, understand their requirements, and prepare all documents before applying.

How Long Does a Preapproval Last?

A preapproval letter usually lasts between 60 and 90 days.

Why does it expire? Because your financial situation can change. Lenders want the most up-to-date information on your income, debts, and credit score before committing to a loan.

When your letter expires, you’ll need to reapply with updated documents. This second preapproval is often faster since the lender already has your information.

The only drawback is that renewing requires another hard credit check, which may reduce your score slightly.

Steps to Renew Your Mortgage Preapproval

If your home search takes longer than expected, you may need to renew your preapproval. Here’s how:

• Check the expiry date. Preapproval letters are dated. Count forward 60 to 90 days to know when yours will expire. If you’re unsure, ask your lender.
• Talk to your loan officer. Explain why you need a renewal. Since it can take up to 10 days for the new letter, start the process early to avoid gaps.
• Update your documents. Provide your latest pay stubs, bank statements, retirement account records, and asset statements. If you’ve had major life changes, such as a new job or new debt, inform your lender.
• Expect another credit check. Your score may dip slightly again due to the hard inquiry.

Think of renewal as a refresh rather than an extension. The loan amount, interest rate, or terms can be different in the new letter.

Final Thoughts

A mortgage preapproval is one of the smartest steps before house hunting. It gives you credibility, strengthens your offer, and speeds up the mortgage process. But it doesn’t last forever; preapproval letters are usually valid for only 60 to 90 days. If your search takes longer, you’ll need to renew with updated documents.

For any kind of help related to mortgage preapproval, feel free to contact us at Total Mortgage.