How Long Does A Mortgage Preapproval Last?

Getting preapproved is an important part of the home buying process. Once you find a lender you trust and receive a preapproval letter from them, you can make a competitive offer on a home. But how long is a mortgage preapproval good?

The answer is: usually 2 – 3 months, but it depends on the lender, your credit and other factors. Because the window on any preapproval is limited, you’ll need to strategically time your preapproval and know how long it lasts to ensure it’s good for the duration of your home buying journey.

What Is A Mortgage Preapproval?

A mortgage preapproval is a process by which a lender determines how much you can borrow to finance a home purchase. A lender will look at your income, assets, liabilities and credit score to determine the amount you can afford to spend.

Getting preapproved for a home loan also makes it easier to shop for a home and will strengthen your bid when you make an offer.

You can always look at houses without being preapproved, and you can even make an offer without a preapproval. However, if you’re house shopping in a competitive market and two people submit an offer on a home but only one is preapproved, the preapproved buyer will likely have their offer accepted. That’s because the seller may feel more confident that the buyer with the preapproval has the financial backing to purchase their house.

Preapproval also gives you time to gather your major financial documents before getting too deep into the mortgage process so you don’t have to worry about this once you’ve made an offer.

When Should You Apply For Mortgage Preapproval?

It’s wise for home buyers to understand how much house they can afford before they start shopping. It’s a good idea to get preapproved for a mortgage before you begin seriously contemplating homes you may want to buy.

The best strategy is to apply for a mortgage preapproval when you’re actively house hunting, but not so far in advance that you risk your preapproval expiring.

The Difference Between Preapproval And Prequalification

When considering a mortgage preapproval, it’s critical to understand the difference between a preapproval and a prequalification. A prequalification says you’re likely to qualify for a mortgage, but it doesn’t carry as much weight as a preapproval because it’s based primarily on a buyer’s self-reported information about their finances.

Unlike preapproval, prequalification doesn’t involve a hard inquiry into your credit and the lender is basically taking the buyer at their word rather than verifying through documentation where the buyer stands financially. As a result, the estimate of how much you can afford to spend on a home will be less reliable than the one you’ll receive with a preapproval.

What Is A Mortgage Preapproval Letter?

Once you’re preapproved, your lender will give you a preapproval letter stating how much you should be able to spend on a home purchase based on the lender’s review of your financial standing. The letter is vital for a few reasons. First, real estate agents usually ask to see your preapproval letter before they will show you houses. Knowing that you’re preapproved will help your agent understand your budget and assure them that you’re capable of buying a house.

How Long Is A Mortgage Preapproval Good For?

In most cases, mortgage preapproval is valid for around 60 – 90 days. Your financial situation can change substantially within a few months, and many lenders require you to get preapproved again if you’ve gone beyond the 90-day mark.

It’s not always bad, though, if a borrower’s financial situation changes from when they were first preapproved. For example, upon your first preapproval, you may learn that you have a less-than-ideal credit score. If you lower your debt-to-income ratio (DTI) and take other steps toward improving your credit score, you could be preapproved for a larger amount the second time around.

If your preapproval letter has expired, you’ll have to find a new lender or reapply for preapproval with the same one.

How Many Preapproval Letters Should You Get?

While you can get multiple preapproval letters, it can hurt your credit if you don’t have your credit pulls done during a 2-week period. Since lenders run a credit check before issuing a preapproval, it leaves a hard inquiry on your credit report. A hard inquiry can decrease your credit score by several points, and too many inquiries can be a red flag to lenders.

If you apply for preapproval with multiple mortgage lenders over just 14 days, it will show up on your credit report as only one hard credit pull. So, when you’re shopping around, don’t wait several weeks between applications. It’s better to do them all at once so you can lessen the impact on your credit score.

How Long Does It Take To Get Preapproved For A Mortgage?

Once you choose a mortgage lender, the preapproval process will typically take no more than a few days.

With Rocket Mortgage^®, the steps required for mortgage preapproval are simple. First, you’ll need to submit a mortgage application. Typically, we’ll check your credit history and ask you some questions about your financial standing and the home you want to buy.

We’ll review your income and assets and analyze your most recent bank statements. Lenders like us want to ensure that you can comfortably afford your monthly mortgage payment, so we’ll look for any financial red flags such as outstanding credit card debt or unpaid medical bills.

The Bottom Line

Typically, borrowers shouldn’t get preapproved until they’re ready to actively search for a home. Waiting will ensure that their preapproval letter doesn’t expire while they’re house shopping, and it will give them confidence that any offer they make on a house will at least be seriously considered.

If you’re ready to buy a home or think you might be ready in the near future, be sure to take the steps necessary to start your home buying journey. One of these steps is getting an application started with Rocket Mortgage, which you can do today.

¹Participation in the Verified Approval program is based on an underwriter’s comprehensive analysis of your credit, income, employment status, debt, property, insurance, appraisal and a satisfactory title report/search. If new information materially changes the underwriting decision resulting in a denial of your credit request, if the loan fails to close for a reason outside of Rocket Mortgage’ control, or if you no longer want to proceed with the loan, your participation in the program will be discontinued. If your eligibility in the program does not change and your mortgage loan does not close, you will receive $1,000. This offer does not apply to new purchase loans submitted to Rocket Mortgage through a mortgage broker. Additional conditions or exclusions may apply.