How Long Does a Mortgage Preapproval Last?

Applying for a mortgage preapproval is an exciting step in the homebuying process. It means you're ready to start moving away from Zillow browsing sessions and actually start getting serious about your homeownership goals.

Before you apply for a mortgage preapproval, though, it's important to know what you're getting into. It can take some work, and it doesn't last forever. Preapprovals can last anywhere between 30 and 90 days, on average, though the exact duration will vary by lender.

Here's what you need to know about how to fit your homebuying goals within short windows like this.

What Is a Mortgage Preapproval?

A mortgage preapproval is a letter you get from your potential lender stating it's likely you'll be approved for a loan with them. It means you've already undergone some of the underwriting process, such as verifying your income and credit score, and the lender just needs to verify other details about the loan once you're ready to put in an offer on a house.

A mortgage preapproval letter does not mean you're automatically approved for a loan. It's still possible you'll be declined, but perhaps less likely.

Why Do I Need a Mortgage Preapproval?

For the most part, you don't need a mortgage preapproval letter to shop for houses, but having one can help give you a leg up once you're ready to buy a house. It shows the seller that you're serious about buying their house. For this reason, some sellers may require a preapproval letter for you to book a showing.

The Mortgage Preapproval Process

As with any loan or line of credit, the lender will need to verify that you are likely to pay back the loan in full and have good enough credit. Here's some of the documentation lenders may require when you apply for a mortgage preapproval:

• W-2s for the past two years
• Most recent bank statements
• Two years' worth of tax returns
• Pay stubs for the past 30 days
• Proof of any other income you receive
• Information on any long-term debt or assets you have

This is a much shorter list of the information you'll need when you apply for the mortgage loan, but the exact documentation required may vary from one lender to the next.

How Long Does a Mortgage Preapproval Last?

After you apply for a mortgage preapproval, your lender will issue you a letter if they decide you're approved. This letter has an expiration date; usually, it will last anywhere from 30 to 90 days.

It's a good idea to know how long your mortgage preapproval will last before you apply because that will tell you how quickly you have to write an offer on a home. Don't stress about it too much, though. It's not uncommon for house hunters to continue looking well after the preapproval is set to expire. Bankers have a way of dealing with this, too.

What Happens When a Mortgage Preapproval Expires?

If your mortgage preapproval expires before you're able to put in an offer on a home and have it accepted, don't worry. You should be able to renew your mortgage preapproval by submitting recent documents to your potential lender showing your financial situation hasn't changed since you last applied. Then, you simply get a new mortgage preapproval letter and repeat the process until you're able to nab the home you want.

Again, it's a good idea to check with your potential mortgage lender before you apply to find out what their policies are about renewing a mortgage preapproval letter. Make sure to ask them:

• What documents will you need to see?
• Will you need to run a hard credit check again?
• Who should I contact if I need to renew my mortgage preapproval letter?

Frequently Asked Questions (FAQs)