How Long Does Mortgage Pre-Approval Last?

If you’re hoping to buy a home, it’s smart to ponder this question, since even after you receive a lender’s stamp of approval for financing, weeks or even months could pass before you actually buy a house. Will that pre-approval you received a while back still be valid by then?

Since lenders realize that buying a house does take time, pre-approval does have a shelf life, but not an indefinite one. While the length of time varies, in general pre-approval is good for about three months. Here’s what home buyers need to know about how to make the most of this time frame—and what to do if your pre-approval is at risk of running out before you buy a house.

What to know about a mortgage pre-approval? It’s the first step to buying a home

If you want to purchase a home, your first step should be to prove that you have the financial means to do so. This is where pre-approval comes in.

“Pre-approval is the process by which a mortgage professional such as a broker or bank account executive examines a loan application to determine whether a potential home buyer will qualify for a mortgage,” says Matthew Reischer, an attorney and real estate agent at New York’s Flushing Real Estate.

Pre-approval is also key to understanding what your home-buying budget is, adds Michelle Mumoli, CEO of the Mumoli Group at Keller Williams City Life in Jersey City. Since a lender will let you borrow only up to a certain amount, that’s the price range you should stick to when shopping for a house.

 

 

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