If you have no idea what you’re getting yourself into, you’ve come to the right place. Read on to learn about a mortgage pre-approval, how long it’s valid, and how you can get one for yourself. Let’s get started.
Table of Contents
- How Long Is Mortgage Pre-Approval Good For?
- How Do You Get Mortgage Pre-Approval?
- When to Apply for Mortgage Pre-Approval
- What Happens If My Pre-Approval Letter Expires?
- Can You Extend Mortgage Pre-Approval?
- Mortgage Pre-Approval vs. Pre-Qualification
How Long Is Mortgage Pre-Approval Good For?
Most mortgage pre-approvals are good for about 90 days. After this, the pre-approval expires, and further action is necessary to keep it. It’s critical to know how long your mortgage pre-approval lasts so you can stay on target when seeking out a home for yourself.
A mortgage pre-approval only lasts ninety days because financial circumstances change fast. Credit card scores can dip and rise every month. Interest rates can flex. Your pre-approval will not work after ninety days because your situation may look completely different.
How Do You Get Mortgage Pre-Approval?
Before you can deal with how long a mortgage pre-approval lasts, you need one. If you want a mortgage pre-approval, there are a few things you need to handle with your mortgage lender.
You will need to show your mortgage lender your:
- Credit and credit score
- Income tax history and proof
- Desire mortgage amount
- Down payment amount
- Employment verification
- Income proof
You’ll hand all of these items to your mortgage lender for approval.
Your mortgage lender will then examine these documents, ensure their authenticity, and review your qualifications. It typically takes between 2 to 5 days to get mortgage pre-approval. The best part is that you don’t have to be in person to accomplish this task. You can do it in person if you want, but you can also perform it over the phone.
When To Apply For Mortgage Pre-Approval
The pre-approval process is a critical part of searching for a home. However, it can be tricky to understand when to apply. After all, you only get ninety days until the paperwork needs refreshing. When is the best time to get pre-approval during this short period?
You should apply for a mortgage pre-approval as early as you can. This way, you can be ready if you come across your dream home right at the beginning of your search. Achieving pre-approval is an excellent way to show that you’re serious about the home-buying process to the seller.
What Happens If My Pre-Approval Letter Expires?
Your mortgage pre-approval will most likely expire at 90 days, though some fall apart at the 60-day mark. If this happens and you haven’t found a home, you need to deal with your letter to continue with the house hunt.
If your mortgage pre-approval letter expires, you need to:
- Contact your mortgage banker
- Ask for a refresh on your pre-approval
Your mortgage banker will know where to go from here.
From here, they’ll ask you for documents on the latest information needed for a mortgage pre-approval. They’ll look at everything and note any changes. If everything goes smoothly, you will get another mortgage pre-approval letter that’s okay for another 60-90 days of looking for your next home.
If you still can’t find a home at the end of this period, repeat the process. It’s vital to keep your mortgage information updated to get a refresh on your letter as soon as possible after expiration.
Can You Extend Mortgage Pre-Approval?
You can extend a pre-approval for a mortgage through the process stated above. This action will give you more time to search for a home without the stress of no pre-approval. It’s critical to stay on top of it so you can be ready to jump on a quality housing opportunity.
It’s vital to remember that you will run into pre-approval and pre-qualification in your hunt for a home. These are different things when dealing with a mortgage.
Mortgage Pre-Approval vs. Pre-Qualification
Pre-qualification and pre-approval are both parts of taking out a loan for a home. Though they work together, there are distinct differences that lie in these.
Here are some of the distinct differences between these two verifications:
- Pre-approval: An approval that will help you move forward in purchasing the home you want. It can expire and comes after pre-qualification.
- Pre-qualification: A quick check to see if you can access a mortgage. It comes before the pre-approval to check if you can even try for the home you love.
They are not the same thing.
Now that you know all about a mortgage pre-approval, you can feel more secure in the process. Mortgage pre-approvals only last ninety days, so it’s critical to get started as soon as possible so you can be ready to close on the home you love.