How Long is a Pre Approval Good for? 120 Days Explained

How Long is a Pre Approval Good for

How Long is a Pre Approval Good for? 120 Days

An exciting journey is about to begin as you ready yourself to buy a home. One of your top queries likely is: ‘how long is a pre approval good for?’ Settle down, take a breather and let’s dive into this. Spoiler alert: it’s typically a healthy 120 day period.

The History of Pre-Approval in Home Buying

When looking at the historical perspective of pre-approval, it didn’t always exist in mortgage procedures. However, as the market elevated its professionalism, the method was adopted, providing a substantial benefit for potential home buyers.

Dipping into historical archives, we can say that pre-approval emerged as a system to forecast the budget, enabling buyers to understand how much they can afford. If you’re akin to a savvy shopper, trying on a Gucci Belt before purchasing, then a pre-approval is definitely for you!

How Long Is A Pre Approval Good Fors

What Really Is Pre-Approval?

Pre-approval can be likened to a fiscal promise from a lender. It’s more concrete than a prequalification, which is basically an estimate of how much you could be lent, based largely on the information you provide.

Pre-approval involves a more thorough check on your financial standing, employment record and credit history. It’s the real estate equivalent of understanding the mile high club meaning before stepping on a plane. More knowledge equals more power.

The 120-Day Clock Starts Ticking

Yes, pre-approval typically lasts for 120 days (roughly four months) from the date you receive it. But why such timeframe? The lender is essentially taking a snapshot of your finances at a given moment. A period beyond this is considered too long because financial situations can, and do, change.


The Journey Towards Pre-Approval Expiry

Once that pre-approval has been secured, a clock begins to tick. This isn’t meant to rush you, rather to keep the valuation precise. Don’t worry, if you haven’t found your dream house within 120 days, you can usually extend it, but be ready to provide updated financial documents.

In the event your mortgage pre-approval nears its expiry while you’re still home hunting, reach out to your lender. Get an understanding just like knowing what does conditionally approved mean on your application.

Does Pre-Approval Impact Your Credit Score?

Well, in fact, it can, but only slightly and momentarily. When the lender checks your credit to grant pre-approval, a ‘hard’ credit inquiry is performed. These can briefly lower your credit score by a few points. But hey, everyone goes through this process, so don’t fret.

Fact-Checking: Pre-Approval Extension

Can a pre-approval be extended? The answer is a resounding ‘Yes’. However, you may need to provide a fresh set of documentations and another hard inquiry on your credit could be performed.

Pre-Approval Trivia

Okay, a little trivia never hurts. Did you know that a pre-approval isn’t a guarantee you’ll get a loan for any home you want? There are still final checks, like should I be worried about underwriting or what is underwriting in real estate you might ask.


Section 8: Statistics on Pre-Approval

A survey by Zillow revealed that around 60% of home buyers applied for a mortgage pre-approval before beginning house hunting. It’s safe to say pre-approval is a widespread and trusted practice that provides potential buyers with a solid foundation when embarking on their home buying journey.

Better Safe than Sorry: Protecting Your Pre-Approval

Bear in mind that pre-approval is based on your financial status at the time of application. So, large purchases or job changes could jeopardize your mortgage approval. Keep your finances tidy and avoid any drastic movements until the home purchase is complete.

The Joy of Being Pre-Approved

Navigating the mortgage landscape with a pre-approval letter in hand makes you a force to be reckoned with. It gives you an edge during negotiation, and more importantly, provides peace of mind throughout the process.

So there you have it – the clarity you need on how long a pre-approval is good for. With this handy roadmap, may your journey to homeownership be smooth and speedy. Remember, success in the housing market is no stroke of luck but a result of good preparation and sound knowledge. So go forth with gusto and happy house hunting!

Donavon Warren

Donavon Warren

Donavon Warren is a seasoned finance professional with over 20 years of experience. Before embarking into the mortgage industry Donavon attended UCLA. He is the owner of Mortgage Rater, a leading mortgage finance company that offers a range of informational services to clients across the United States. As a finance and mortgage author, Donavon brings his wealth of knowledge and experience to the platform, writing about various topics related to personal finance, investments, home loans, FHA loans, VA loans, 30 Year Fixed rates, no-interest loans, mortgages and more. With his insights and expertise, he aims to educate and empower readers to make informed financial decisions that can help them achieve their financial and mortgage goals. NMLS#2470202
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