How Long Is A Home Loan Approval Good For? Everything You Need To Know

Buying a home is likely one of the biggest financial decisions you’ll ever make. Before you start touring open houses and making offers, it’s important to get preapproved for a mortgage. Preapproval shows sellers that you’re a serious buyer who has been vetted by a lender. But preapprovals don’t last forever – so how long is a home loan approval good for?

Getting preapproved is one of the first steps to take when buying a house. Here’s what to know about how the preapproval process works, what a preapproval letter means, and how long you can expect your home loan approval to be valid for.

What Does It Mean To Get Preapproved For A Mortgage?

Preapproval is when a mortgage lender reviews your finances, including income, debts, and credit score, to determine the loan amount you qualify for.

The preapproval process involves

• Submitting a mortgage application with personal and financial details
• Authorizing the lender to access your credit report
• Providing documents to verify your income, assets, and debts
• Answering questions about the type of home you want to buy

Once complete, the lender can give you a preapproval letter estimating the loan amount, interest rate, and other terms you’d likely qualify for.

Getting preapproved has several benefits for homebuyers:

• Shows sellers you’re a serious buyer who’s ready to move quickly
• Gives you a better idea of your true budget before house hunting
• Makes the process faster once you’re ready to close since you’ve already done paperwork

The difference between preapproval and prequalification is that preapproval takes a deeper look at your finances and is based on verifying documents. Prequalification relies more on estimates.

What’s In A Mortgage Preapproval Letter?

Once preapproved, your lender will issue a preapproval letter outlining details such as

• The maximum loan amount you’re approved to borrow
• The estimated interest rate on your loan
• Expected monthly payments
• Any special mortgage programs you may qualify for
• Conditions of the preapproval

This official letter from a lender shows real estate agents and sellers that you’re a serious buyer who’s gone through the initial underwriting process

It doesn’t guarantee final mortgage approval, but indicates you’re likely to qualify for the stated terms barring any significant changes to your finances.

How Long Are Mortgage Preapprovals Good For?

The length of time a preapproval is valid can vary by lender. But in most cases, a mortgage preapproval letter is good for 60-90 days.

Here are some reasons preapprovals expire after 60-90 days:

• Financial situations can change quickly, so lenders want up-to-date information
• Rates and loan programs fluctuate over time
• Lengthy preapprovals could require starting the process over again

If it’s been over 90 days since you got your preapproval letter, you’ll probably need to reapply and get a new one before making an offer.

However, some lenders may be willing to extend your preapproval, especially if you can show your financial situation is the same or has improved. It’s worth asking if an extension is possible before completely redoing the process.

Should You Get Multiple Mortgage Preapprovals?

It’s generally recommended to get preapproved by only one or two lenders within a short period of time. Here’s why:

• Each preapproval requires a hard credit inquiry, which can knock a few points off your score
• Too many inquiries in a short timeframe can actually raise red flags for lenders

To minimize impact to your credit, try to complete all preapproval applications within a 14-day window. Mortgage shopping within a 14-day period counts as one inquiry rather than multiple hard pulls.

Getting preapproved by just one trusted lender is often sufficient. But two could give you room to compare options.

When Should You Apply For Preapproval When Buying A House?

Timing is important when it comes to getting preapproved:

• Apply too early and you risk the preapproval expiring before you need it
• Wait too long and you may miss out on putting in competitive offers

As a general rule, you’ll want to get preapproved around the time you’re ready to actively start touring homes and making offers. But take into account the 60-90 day validity period.

Connecting with a real estate agent can help determine the best preapproval timeline for your home buying goals in the local market.

How Long Does It Take To Get Preapproved For A Mortgage?

Once you submit a full application with required documents, it typically takes anywhere from a few days to a week to receive a preapproval letter.

Here are some things that influence how quickly you can get preapproved:

• Your responsiveness in submitting needed documents
• How efficiently your lender processes applications
• Whether you have a more complex application that requires extra review

Technology has significantly expedited parts of the mortgage process. With an online lender like Rocket Mortgage, you can complete much of the application and verification steps electronically.

Still, expect that preapproval is not instant and will take a few days to review your information thoroughly. Rushing the process can lead to mistakes, so give your lender the time needed to properly evaluate your application.

What Happens After Preapproval Expires?

Once your preapproval letter has expired, you essentially have to restart the process if you still want to buy a home.

Next steps include:

• Contacting your lender to explain the situation
• Submitting new documents and paperwork
• Completing a new credit check
• Waiting for your new preapproval letter

To avoid having to redo the preapproval process, submit updated documents before your current preapproval expires. For example, providing recent pay stubs or bank statements may allow the lender to extend your preapproval.

If it’s been less than 30 days, your lender may be able to use the same credit report again. After 30 days, you’ll likely need an updated credit check.

Tips For Keeping Your Preapproval Active

Here are some tips to prevent your home loan approval from expiring before you need it:

• Only get preapproved when you’re serious about buying soon
• Mark your calendar when the approval will expire
• Check in with your lender as the date approaches
• Provide updated documents to extend if needed
• Avoid large purchases or changes to your debts/income
• Review your credit reports for errors before applying

Staying in touch with your lender and being proactive about extending your approval can save you the headache of restarting the process later.

The Bottom Line

Preapproval is one of the first steps every homebuyer should take before house hunting. It shows you’re serious and helps you know your true budget.

But most preapprovals are only valid for 60-90 days. After that point, you’ll likely need to reapply if you still want to buy a home.

Keeping your lender updated on any big financial changes and providing current documents can sometimes allow them to extend your approval timeframe. But expect that after 90 days, you’ll need a new preapproval letter.

Getting preapproved at the right time and understanding how long it lasts can set you up for success in navigating the home buying process and making a competitive offer.