So just how long does mortgage pre-approval last? This is one of the key parts of applying for a mortgage and purchasing a home; however, it doesn’t last forever.
Here are the key facts about mortgage pre-approval that you need to know:
What is Mortgage Pre-Approval?
A mortgage pre-approval is a pretty official process to see if you can qualify for a mortgage on a specific house. It is a written (but conditional) approval document from a bank or other mortgage lender.
How Do You Get Pre-Approved for a Mortgage?
You first have to fill out a loan application with the lender of your choice. Next, you can submit verification of your income, assets, and employment.
Usually, this can be things like bank statements, pay stubs, or deeds. The lender does this to make sure you have and will continue to have enough money to make the payments on your loan in full and on time.
Next, the lender will run a “hard” credit check. They do this to see what other debts you currently have, have held in the past, and what your track record is in handling them. This credit check can have significant impact on the terms of your loan, the interest rate you pay and ultimately you final loan approval.
Why Do You Need Mortgage Pre-Approval?
You usually need mortgage pre-approval to show that you are a serious buyer to both the seller and their agent. It really ups the chances of getting your offer accepted, closing the sale sooner, and at the price that you want. In addition, many Realtors will not begin to show you houses until you can prove you’ve been approved by a mortgage lender. Out of respect for the seller, the seller’s agent, the Realtor you are working with and everyones’ time, it is a standard prerequisite to be pre-approved.
Once your agent and the seller are confident you can afford to purchase, the entire process can move forward more quickly and smoothly. This is especially true in a hot market where homes can pop up and be sold in a matter of days. If you want a fighting chance at getting the home you of your dreams, you need mortgage pre-approval.
How Long Does Mortgage Pre-Approval Last?
Generally, a mortgage pre-approval will last about 60 to 90 days. However, this is always contingent on your financial circumstances staying consistent.
For example, if you experience a major life event in the interim period, like losing your job, ending your marriage, or significant medical bills, then it is always possible that the conditional credit offer could be voided.
Always keep in contact with your mortgage lender about any changes to ensure your paperwork is up to date.
If you have any questions or concerns about Mortgage Pre-Approval and how it impacts the home buying process, our agents are always willing to go over your options with you, as well as provide a list of trusted mortgage lenders. Contact us today!