The mortgage pre-approval lasts for 30 to 90 days. The pre-approval portrays you as a serious homebuyer. Moreover, 86% of sellers usually sell their homes to buyers who have pre-approved mortgages.
In addition, 53% of first-time home buyers are approved for a mortgage pre-approval. You must have a low DTI ratio and a good credit score in order to qualify for pre-approval. Get started here!
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Preapprovals are key 🔑
- The expiration period of the mortgage pre-approval varies with each lender.
- You can renew the mortgage pre-approval letter within a couple of weeks, once it gets expired.
- Mortgage pre-approval can affect your credit score temporarily.
What Is a Mortgage Preapproval?
Mortgage preapproval is a process through which a lender provides a loan estimate for you to buy a house. They verify your income, credit score, assets, and more. The process helps the lender know whether you are eligible for mortgage qualification.
After the preapproval process, the lender provides a preapproval letter that specifies the type, interest rate, and loan amount. Apart from that, it contains certain conditions to get approval and the term period of the loan.
>>What’s My Home Worth? Get the home value estimate of the future property and determine how much loan you are eligible for.
Why Do I Need a Preapproval Letter?
The letter helps you determine a property within the budget. It builds trust among the sellers and agents and provides a sense of security to home sellers. The letter gives you an edge over other homebuyers.
How Long Does a Preapproval Last?
Most lenders’ pre-approval lasts for 30 to 90 days from the date of application. Within the given time, you have to close the deal, or else the letter will expire.
The lender preapproves based on the recent financial status of the borrower. However, any change in finances can affect the mortgage preapproval.
How to Renew a Mortgage Preapproval Letter?
The process to renew a mortgage preapproval letter doesn’t take long. Here are the steps to renew the mortgage preapproval letter:
- Inform the lender that you wish to renew the letter.
- Check the expiration date of the letter.
- Apply for renewal of the preapproval letter.
- Submit all the updated documents to the lender.
» Documents Needed for Mortgage Pre Approval: Read to learn more.
How Long Does It Take to Get Preapproved?
The pre-approval process is the same for every mortgage lender. They check the credit to see if there are any debts or overdue bills.
Generally, it takes 7–10 days to get preapproved from a lender. If you get it from an authorized online platform, they will provide it within 24 hours. If you fail to fulfill the requirements, the lender might reject your application or put it on hold.
Bottom Line
The duration for mortgage pre-approval is 30–90 days, after which your letter will be null and void. The mortgage pre-approval gives sellers a sense of security. And along with that, it helps the real estate agents focus on serious buyers.
If your letter is good only for 90 days, don’t waste time; start looking for your house now. Houzeo has a wide range of house listings for you to browse through.
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Frequently Asked Questions
What factors affect mortgage pre-approval?
Here are 5 factors that affect mortgage preapproval:
- Credit score
- Work history
- Debt-to-income ratio
- Condition of the home
- Down payment
Does a preapproval hurt your credit score?
Yes, mortgage preapproval may affect your credit score. But it will dip for a short period. If you pay your bills regularly and have no debt, your credit score will recover quickly.
How many preapprovals should I get?
You should get at least three preapproval letters from different lenders. However, you will need only one letter to win a bid, which will get the best quote.
