If you’re preparing to buy a home and you’ve been reading my market matters series, then you know that I am an advocate for getting pre-approved with a lender before you do anything else! But here’s an important question: Do mortgage preapprovals expire?
A mortgage preapproval is a valuable tool when it comes to house hunting. It’s a lender’s initial assessment of your financial situation, creditworthiness, and the amount they’re willing to lend you for a home purchase. But keep in mind, preapprovals DO have an expiration date.
Mortgage preapprovals typically last for a specific period, usually around 60 to 90 days. This timeframe allows you to search for a home within a realistic budget. However, it’s important to remember that your financial circumstances can change, and lenders need up-to-date information to assess your eligibility accurately.
Now, let’s say your preapproval expires before you find your dream home. Lenders will review your current financial situation, credit score, and any changes that may have occurred since the initial preapproval. Keep in mind that market conditions, interest rates, and lending criteria can also change over time, which may affect your new preapproval.
So, if you’ve been pre-approved in the past but haven’t been actively looking, you probably need to get it updated. Stay in touch with your lender and provide any updated documentation they request. Let them know of any major purchases you’ve made, job changes, or income changes. This way, they can reassess your eligibility and issue a new preapproval letter if you still meet their criteria.
Remember, a mortgage preapproval is not a guarantee of funding, but it does provide a strong indication of your borrowing capacity. So, stay proactive and informed during your home search.
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