Thinking of a mortgage pre-approval? Do you want to confirm your creditworthiness without having a purchase contract in place? Do you want to get your mortgage pre-approved, but you don’t have a clue about how long it lasts and what benefit it offers? Then keep on reading for details on how long it takes to get your mortgage pre-approved, what its advantages are, and whether you should contact your loan pre-approved. How long does pre-approval for a mortgage last?
What Does It Mean to Get a Mortgage Pre-Approval?
Preapproval refers to getting close to confirming your creditworthiness without actually having a contract in place. For example, if you are looking to get your loan pre-approved, you will need to complete a mortgage application so that the lender may verify the information that you provide.
Preapproval is an intelligent step to take when you are ready to put in an offer on a home. It helps the seller verify whether you are serious about securing a mortgage, making it more likely for you to complete a home purchase.
How Long Does a Mortgage Pre-Approval Take?
Since you want to buy a home for yourself, you must know that there are distinct roles in homebuying; thus, prequalification and pre-approval can take different amounts of time. Therefore, before learning how long the pre-approval lasts, you should know how long it takes to get a pre-approval.
As for the amount of time to get prequalified, it is a quick approach for the Bank of America, and its process is now online, and you may get results within an hour.
But for mortgage pre-approval, you need to provide more information, so your application is likely to take more time. If everything goes accordingly, you should receive your pre-approval letter within ten business days after providing all the necessary information required.
What Are the Requirements for Mortgage Pre-Approval?
Before knowing how long a pre-approval lasts, you must first complete the requirements for it.
Having a pre-approval at hand puts you at an advantage and proves to the sellers that you mean business for buying a home. When applying for a pre-approval, the lenders need to verify and assess your financial health to come up with a price range for your home loan that you’ll be able to afford. You should have the following financial records as the sellers will request for them:
- Bank accounts
- Credit card debt details
- Student loan debt details
- Credit reports
- Pay stubs
- Asset records like stocks and bonds
- Retirement savings record
- Records of taxes
- Financial responsibilities and obligations
Then the loan officer will assess your data; this will help the sellers calculate your debt-to-income ratio.
How Long Does a Mortgage Pre-Approval Last?
After receiving your pre-approval letter, you must be wondering how long it lasts. It would be best to think about all the different ways your finances can change, things like your income, credit history, interest rate, etc. For this reason, a mortgage pre-approval lasts somewhere from a period of 60 to 90 days.
Once your pre-approval letter expires, you will need to contact your lender again with a copy of your updated financial paperwork and apply for a new pre-approval letter. The good thing is that the new letter does not take too much time as they have most of your record information.
Benefits of Having a Mortgage Pre-Approval Letter:
After finding out how long the pre-approval lasts, you can opt for the mortgage now. The following are the perks of having a pre-approval letter:
¬ It will make you financially prepared when hunting for a property. It makes searching for a home both flexible and with less pressure.
¬ You may be undecided whether you want to buy the property or not, so you settle on just ‘browsing.’
¬ Hunting for a property can be a bit daunting, even more so for first-time owners who may be unfamiliar with this.
If you are looking for a home and want to know more about mortgages, mortgage payments, and queries regarding mortgage pre-approval letters, look us up at RateChecker.