How Long Does Mortgage Pre-Approval Take?

Mortgage pre-approval refers to the process by which a mortgage lender decides how much money they’re willing to lend you to buy a home. You’ll receive this estimated loan amount in the form of a pre-approval letter. This document isn’t an absolute guarantee but is meant to serve as a well-researched evaluation of your creditworthiness. 

Pre–qualification can give you a rough idea of your purchase budget. The pre-approval process will take a deeper dive into your finances and credit history to give you a more accurate estimate of what you can expect to borrow.  

Pre-approval starts with a mortgage application. You’ll also need to submit a few important documents, including:  

• Pay stubs  
• Bank statements  
• Tax returns   
• W-2s   

The entire process can take up to three business days, though some lenders may be able to move things along more quickly.  

Is it necessary to receive a pre-approval letter to purchase a home? No, but it helps.  

For starters, a pre-approval letter can give you a clearer picture of your purchase budget. It can also give you more credibility in the eyes of real estate agents and even sellers.   

That’s because sellers may take your offer more seriously if they know there’s a lender willing to back you up. By the same token, real estate agents may be more willing to work with you if they have a clear understanding of your price range. 

The pre-approval process will involve a thorough review of your financial situation. This includes factors like your:  

• Income  
• Credit history  
• Debt-to-income ratio  

Before you can be pre-approved for a mortgage, your lender will check your credit score and consider your income and debts to decide whether you qualify for a home loan. Your financial situation will also determine the loan amount, mortgage term, and interest rate.  

How long does mortgage pre-approval last? The answer isn’t set in stone, but homebuyers can generally expect their pre-approval to last for up to 90 days.  

Many lenders will put an expiration date directly on the pre-approval letter. This typically ranges from 30 to 90 days.   

Be aware that the specified period can vary by lender, and if your finances change during this time, it could affect the validity of the terms and amount of your pre-approved loan.  

Furthermore, because the duration is only as long as 90 days, it’s important to apply for pre-approval only when you’re ready to commit to buying a house. Otherwise, you’ll need to apply for renewal or an extension.  

If you haven’t settled on a house before the expiration date, you can request a renewal from your lender. However, keep in mind that during the pre-approval process, your mortgage lender checks your credit score. This is considered a hard credit inquiry, which can temporarily lower your score.  

For this reason, if you apply for pre-approval from multiple lenders, try to do so within the same 15 to 30-day window. Why? Because most consumer credit bureaus will treat multiple credit checks during this window as a single inquiry, which can minimize the impact to your credit score.  

In some cases, it may take longer to buy a home than you initially expected. If this happens, you may need to extend your pre-approval past its original deadline. 

There are several possible reasons you may need to renew or extend your pre-approval period, such as:  

• You’re still shopping for the right house  
• You need time to review your finances  
• You experienced an unexpected delay with your real estate agent 

Essentially, if you haven’t bought a house during your pre-approval period, your lender will most likely allow you to apply for an extension or renew your pre-approval letter.  

Unfortunately, the process of renewing your pre-approval letter is the same as the original application. You’ll need to submit updated paperwork outlining your finances, and the lender will perform another hard credit inquiry, which means you’ll take another small hit on your credit.  

The good news is that the process should be quick and smooth since you’re simply updating your information. Additionally, the impact to your credit will be minimal, and besides, it’s usually necessary when buying a house.