How Long Does a Mortgage Preapproval Last?

Mortgage Preapproval Timelines by Loan Type

Mortgage preapproval timelines do not vary much by loan type. While different lenders can set their own individual rules for how long preapproval lasts, most preapprovals for all loan types are usually good for 60 to 90 days.

• Conventional loans: These loans are not guaranteed by the government, and preapproval usually lasts 60 to 90 days.
• FHA loans: These loans are guaranteed by the Federal Housing Administration, and preapproval usually also lasts 60 to 90 days.
• VA loans: These loans are backed by the VA, and preapproval typically also lasts 60 to 90 days.
• USDA loans: These loans are backed by the USDA and are for buying homes in rural areas. Preapproval also usually lasts 60 to 90 days.

Why Mortgage Preapprovals Expire

Learning is important in the homebuying process, as it helps you set a budget and understand your loan terms. However, preapprovals are good only for a limited time.

There are many reasons why preapprovals expire, including the following.

• Interest rate fluctuation: When you get preapproved, your mortgage lender tells you what your loan terms will look like. Since rates change until you have locked in your rate, those initial terms are subject to change.
• Credit profile changes: Lenders look at your credit history, including how much you owe and what your payments are, to make sure you can afford your loan. If you have a change in your credit profile, like borrowing more money or making a late payment, this can affect whether you'll qualify to borrow. Lenders want to check for updates.
• Income or employment changes: Your loan approval is based on your income, and lenders want to see that you have a steady job without big changes in your salary. Since your income can change over time, your preapproval is only good for a limited period.

What Happens if Your Preapproval Expires?

Most sellers require you to show proof that you have been preapproved or prequalified for a loan when you make an offer on a house. If your preapproval letter expires, you will likely need to get a new one, as sellers usually won't accept an offer on a house without an active letter.

You'll need to ask your lender to extend your preapproval if you want to move forward with borrowing. This could mean providing updated financial information, like new bank statements or pay stubs.

How to Extend or Renew Your Preapproval

You can extend your preapproval by making a request to your lender. Your lender will usually do a streamlined review of your current financial situation to grant the extension.

In many cases, you will likely need another hard credit pull so that your lender can check your updated credit report.

You may also be asked to provide more recent financial documents, like your current bank statements, pay stubs from the last few weeks, and potentially updated tax returns if you've crossed into a new tax filing year.

When to Apply for Home Loan Preapproval

When you are ready to buy a home, you should apply for a home loan preapproval shortly before you begin shopping for a house.

It can take between a few hours and a few weeks to get preapproved, so don't wait until the morning you're going to look at a house, as you need time to get a preapproval letter. But don't act too quickly, or you will risk the preapproval expiring.

You can check with several lenders to see how long their preapproval process takes. If a lender says they can provide preapproval instantly, you can wait a little longer than if the lender says it takes two weeks.

5 Tips to Keep Your Preapproval Status Active

Ideally, you want to make sure you keep your preapproval status active and can get preapproval extended if necessary, in case you don't find a home right away. Here are a few tips to help you do that:

• Stay organized: Keep your financial documents together so you can provide any updated details that your lender may need.
• Avoid big purchases: Don't take on new debt, like buying a car or financing furniture, as this could affect your credit and ability to borrow.
• Make payments on time: A late payment could hurt your credit and affect your ability to get preapproval extended or to get final approval.
• Don't make any major career change: If you change jobs or your income declines, your lender may not allow you to extend preapproval or get your final loan.
• Talk to your loan officer. If you think you will need to take more time to find the perfect home, keep your loan officer updated.

Does the Lender Check Credit Score Again Before Closing?

Mortgage preapproval doesn't mean you are guaranteed a loan. Your lender will check your credit again before final approval to make sure nothing has changed. Still, you must make sure not to do anything that is going to affect your credit score between preapproval and final approval. Late payments or taking on new debt could negatively affect your mortgage application process..

Final Thoughts: How Long Mortgage Preapproval Lasts

Mortgage preapproval typically lasts 60 to 90 days, so you need to get the timing right and apply before you start shopping for a home, but not too soon. Working with your lender is the best way to decide when to apply.

If you're ready to learn more or to start the homebuying process, reach out to Freedom Mortgage to get prequalified for a mortgage today.

Freedom Mortgage Corporation is not, nor is it affiliated with, any governmental agency or organization. The information provided in this article is for educational purposes only and does not constitute legal, tax or financial advice.

This is not a commitment to lend. Terms, conditions and restrictions apply. Fees and charges apply and may vary by state, product, and loan amount. Loans are subject to credit approval.