As you navigate the home buying process, you’ll have to wait for your pre-approval from a mortgage lender before you can make offers on homes. The letter plays a major role in the types of homes you could purchase, so you might wonder, “How long do mortgage pre-approvals last?” 

Continue reading to learn more about home loans and expiration dates from a top mortgage broker in Houston.

What Is a Mortgage Pre-Approval & Why Are They Necessary?

When you undergo the mortgage pre-approval process, you’re learning how much money you qualify for to buy a home. Lenders determine the possible loan amount in several ways; they’ll check your credit scores and review your income, liabilities, and assets. For a verified approval letter, you must provide additional documents like your pay stubs and tax returns.

Your pre-approval letter will show your buying power to home sellers and real estate agents. The document will have:

• The loan amount
• Your interest rate
• Details about the loan 

With your pre-approval letter, agents and sellers will have a better idea about your budget and know that your offer to purchase a particular home is legitimate. 

Current housing market trends might show that many homebuyers are embracing higher interest rates, but that doesn’t mean you shouldn’t look for the best rates available to you. You can get pre-approval from multiple lenders, but it can hurt your credit if the lenders put a hard inquiry on your credit report by checking your scores. Still, if you get multiple letters from various lenders within a 14-day grace period, you’ll only have one hard inquiry, not several. 

General Timeline for a Mortgage Pre-Approval

The process for securing a pre-approval letter is relatively straightforward but can take some time. First, you’ll have to find a reliable mortgage lender to work with during the home buying process. The lender can be from a major banking institution or a local firm. When you’re ready to actively begin your search for a new home, you’ll submit a mortgage application to the lender. 

When the lender receives your application, they will pull your credit scores and inquire about your financial history and current financial situation. The lender will also consider the type of home you wish to buy, review your assets, and analyze your recent banking history to determine your home loan eligibility.

Financial problems like unpaid hospital bills and a poor income-to-debt ratio can be red flags to a lender. It can affect your pre-approval status, interest rate, and loan amount.

Depending on your lender, you could receive your pre-approval in as little as a day. Still, for many people, it’ll take a few days to receive the letter because the lender has to research your financial background thoroughly. 

Do Home Loan Pre-Approval Letters Expire?

So, how long do mortgage pre-approvals last? Most lenders offer letters good for 60 to 90 days. However, the final expiration date depends on the mortgage lender.

Though it can take several months to find and close on a house, the pre-approval letter has a relatively short lifespan. The reason for the 60- to 90-day expiration is that a person’s financial situation could change drastically at a moment’s notice. By producing pre-approval letters good for two to three months, lenders have less risk of pre-approving someone for a home loan with outdated financial information. 

It might be in your best interest for your pre-approval letter to expire. If your financial situation improves within the pre-approval period, you could get better rates during your next pre-approval. 

How To Renew Your Pre-Approval Letter

If you’re still exploring houses, but your pre-approval letter expires, you’ll have to renew it. 

Confirm Its Expiration Date

It’s best to renew your pre-approval before the letter expires. As such, one important detail you should know is how many days your letter is valid. If it has a specific expiration date, make a note of that while you’re looking for your new home. 

If you have any questions about how long you can use your pre-approval letter, be sure to contact the lender for clarification. 

Call Your Mortgage Loan Officer

Once you know how long your pre-approval is good for, reach out to your mortgage loan officer before the letter expires. When talking to the loan officer, explain that you want to renew your pre-approval offer. 

The process to renew a pre-approval offer is usually simpler than the initial process since your lender would have all of your basic information. However, it could still take up to 10 days or more for the new pre-approval letter to arrive.

That’s why it’s best to start the renewal process several days or weeks before the original letter expires. Taking a proactive approach also ensures you aren’t actively looking for a home without a pre-approval, which can affect your loan amount and interest rate estimates.  

Submit New Documentation

Since your financial situation can change by the time you must renew your pre-approval letter, you’ll likely need to provide your lender with current financial documents. Necessary documents may include:

• Bank account statements
• Pay stubs
• Details about retirement accounts
• Documents for brokerage accounts

Major life events could also affect your status as a borrower. For example, if you get married or divorced during your home loan pre-approval period, your credit score and lending power could be different by the time you renew your letter. 

As such, it’s important to know that renewing a pre-approval letter for a home loan won’t extend your offer. Instead, consider the process as a way to refresh your offer since the pre-approval terms and details will probably change. 

Start Working With an Experienced Mortgage Broker Today

The answer to, “How long do mortgage pre-approvals last?” will vary from person to person, but Champion Mortgage is here to help. We offer flexible home loans at affordable interest rates for home buyers throughout Houston, Texas. We’ll help you understand different types of mortgage loans and what to expect with your mortgage pre-approval.

Call (281) 658-5577 today to schedule a consultation with our Champion Mortgage team.