How Long Is A VA Loan Pre-Approval Good For? Everything You Need To Know

Getting pre-approved for a VA home loan is an important early step for servicemembers and veterans looking to become homeowners. But pre-approval letters aren’t valid indefinitely. So how long does VA loan pre-approval last?

In general you can expect VA pre-approvals to be valid for 60-90 days. After this period, lenders will likely want to take a fresh look at your finances to make sure the pre-approval still reflects your maximum purchasing power.

Understanding the timeline and limitations around VA pre-approvals can help you make the most of this useful document as you search for your dream home.

Why Get Pre-Approved For A VA Loan?

Pre-approval provides several key benefits:

• It shows home sellers and real estate agents you’re a serious, qualified buyer Many listing agents require a pre-approval letter before they’ll consider an offer.

• Gives you a realistic estimate of how much home you can afford. This helps you make competitive offers within your budget.

• Identifies potential roadblocks early on. Maybe your credit needs work or your debt-to-income ratio is too high. You can start addressing these issues.

• Confirms your eligibility for VA financing The lender reviews your service history, income, debts and credit

• Speeds up the formal mortgage process. You gather required documents for underwriting upfront.

Basically, pre-approval gives you the confidence to start seriously shopping because you know what it will take to actually get a VA loan.

How Does VA Loan Pre-Approval Work?

Pre-approval is more involved than pre-qualification. To pre-qualify, the lender just takes your word about income, debts, etc.

With pre-approval, the lender verifies everything through documents like pay stubs, bank statements and your VA eligibility. Pre-approval typically involves:

• Submitting financial documents

• Filling out loan applications and forms

• Getting a “hard” credit check

• Providing evidence of military service

• Calculating key ratios like your debt-to-income ratio

• Ensuring you meet minimum VA residual income requirements

The lender runs your information through an Automated Underwriting System. This instantly determines if you’re eligible based on set standards.

If you don’t get an “approved” result, the lender may manual underwrite your application using stricter criteria.

The end goal is to get a pre-approval letter stating the loan amount and terms you qualify for.

Why Do VA Pre-Approvals Expire?

Lenders issue pre-approval letters based on a snapshot of your finances at that moment. They make their best estimate of what you can afford using current income, debts, credit, etc.

But financial situations evolve. Yours could improve or deteriorate over the next couple months.

That’s why most lenders make pre-approvals valid for only 60-90 days.

After this timeframe, the pre-approval is considered “stale.” The information it’s based on is now outdated.

To make sure you still qualify for the mortgage amount and terms listed, the lender has to re-verify your finances.

So pre-approvals aren’t permanent. They provide only a short-term assessment of your homebuying potential.

When Do Lenders Update Pre-Approvals?

Lenders understand home searches can take months. So they don’t necessarily wait until your pre-approval letter expires to recheck your eligibility.

In most cases, they require an update after 90 days. This involves looking at recent bank statements, pay stubs, etc.

They want the most current data, even if your pre-approval still has a few weeks of validity left.

Another scenario where lenders instantly re-evaluate:

You find a home and make an offer. Now that you’re under contract, they immediately verify your finances again before moving forward.

This protects against any changes that could derail closing. They confirm you still qualify for the loan amount in the contract.

Outside of periodic updates, certain events can instantly invalidate your pre-approval:

• Taking on new debts
• Late payments
• Change in income
• Large cash withdrawals
• Co-borrower changes
• Major credit events

Basically your pre-approval expires if anything happens that could substantially alter your homebuying eligibility or purchasing power.

How Long Do VA Pre-Approvals Take To Get?

At Veterans United, we can often provide pre-approvals within 24 hours. But every lender works a bit differently.

In general, you can expect to receive your pre-approval letter in 3-7 business days.

Turnaround times depend partly on:

• How quickly you submit required documents
• The lender’s workload and staffing
• Whether you’re manually underwritten

The more responsive you are in providing paperwork, the faster pre-approval happens. Missing documents cause delays.

Tips For Making Your Pre-Approval Last

To maximize the usefulness of your pre-approval as you shop for a home:

• Don’t make any major financial moves without consulting your lender. This includes paying off debts, buying a car, changing jobs, etc.

• Advise your lender about any changes ASAP. Maybe you got a promotion and raise. Let them know so they can adjust your approval.

• Check in with your lender every 2 months. Ask if they need updated documents to keep your pre-approval current. Don’t wait for it to expire.

• Know when you must update income and assets. If it’s been 90 days, the lender likely requires new verification even if your letter is technically still valid.

• Be ready to reconfirm right away once you’re under contract. You’ll provide updated financial records and complete full loan approval.

• Ask for a “revalidation” letter if your pre-approval is about to expire but you need a little more time. Some lenders will extend it another 30 days.

• Don’t make an offer without a valid pre-approval. Wait until you have an updated letter. Otherwise your contract could fall through.

The keys are communication with your lender and promptly providing any requested documentation. This keeps your pre-approval letter current for as long as possible.

What Happens After Pre-Approval Expires?

Once a pre-approval expires, you essentially have to reapply and go through the process again.

The lender will:

• Obtain new income and debt verification
• Pull current credit reports
• Rerun AUS or manual underwriting

This determines if the loan amount and terms are still appropriate.

You’ll receive a new pre-approval letter with updated info that may differ from your expired one.

Maybe rising debts mean you now qualify for less. Or your income increased allowing you to afford more.

Either way, an expired pre-approval usually can’t be revived or extended. Timely updates and re-verification are required.

Shop Smarter With Valid Pre-Approval

While pre-approvals eventually expire, keeping yours current for as long as possible provides major homebuying advantages.

• Shows sellers you’re qualified now rather than 2-3 months ago

• Prevents hiccups that lead to losing out on homes

• Confirms you can still swing the offered purchase price

• Speeds up the loan process once under contract

Discuss expectations upfront with your VA lender so you always have a valid pre-approval when you need it. This sets you up for success as you seek your ideal home.