If you’re planning to buy a home, one of the first and most important steps in the process is getting pre-approved for a mortgage. Pre-approval not only helps you understand what you can afford, but it also gives sellers confidence in your ability to secure financing. But how long does a pre-approval actually last? And what do you need to do to get one?
Let’s walk through what a pre-approval is, what’s required to get one, why it’s important to start with it, and how long it remains valid.
What Is a Mortgage Pre-Approval?
A mortgage pre-approval is a letter from a lender stating that they are tentatively willing to lend you a specific amount of money for a home purchase. It is based on a thorough review of your financial situation, including your income, credit score, assets, debt, and employment history. Getting pre-approved should be the first step in the mortgage process, and with Homestead, it takes only minutes, so it doesn’t cause any delays.
Pre-approval differs from pre-qualification, which is a less formal estimate of what you might qualify for. Pre-approval carries more weight because it involves verifying your documentation and conducting a credit check.
What Is Required to Get Pre-Approved?
To obtain a pre-approval, you’ll need to provide several key documents and give the lender permission to check your credit. Requirements typically include:
- Proof of income (such as pay stubs, W-2s, or tax returns)
- Proof of assets (bank statements, retirement or investment accounts)
- Credit check (can be done without a hard credit pull to avoid affecting your score)
- Employment verification (often through recent pay stubs or employer contact)
- Identification (such as a driver’s license or Social Security number)
Once the lender reviews this information, they will issue a pre-approval letter stating the loan amount you’re qualified for and any conditions that apply.
Why Should You Get Pre-Approved Before House Hunting?
Getting pre-approved early in the process offers several key benefits:
- Know Your Budget
Pre-approval gives you a clear picture of what price range you can comfortably afford, helping you avoid wasting time looking at homes outside your budget. - Show Sellers You’re Serious
In competitive markets, sellers often prefer offers from buyers who are pre-approved. It shows that your financing is likely to go through and gives your offer more credibility. - Identify Financial Issues Early
If there are any red flags in your financial profile, such as a lower credit score or high debt-to-income ratio, pre-approval gives you a chance to address them before you’re under pressure. - Move Faster When You Find the Right Home
With a pre-approval in hand, you’ll be in a stronger position to make a quick and confident offer.
How Long Does a Pre-Approval Last?
At Homestead, we typically state that pre-approvals are valid for 120 days (the term of the credit report). However, every lender has its own policies, and it is essential to confirm with your loan officer. During your search, it’s always a good idea to have your loan officer review your loan every 30 to 60 days, especially if you’re actively looking.
Let’s say you apply, get pre-approved, and then 45 days later, you want to make an offer. We can send you a fresh pre-approval so the date is more recent.
If more than six months have passed since your original application and you find a home, we’ll need to update your file by requesting new pay stubs and bank statements, along with a soft credit refresh.
We also recommend that when you find a house, you consult with your LO and ask them to run payment scenarios and closing costs that are property-specific. Different zip codes have different tax rates.
For example, Jefferson County and St. Louis County have significantly different tax rates. That could mean a payment difference of $150 per month or more.
Final Thoughts
Getting pre-approved is a smart and necessary step on your path to homeownership. It helps you understand your budget, strengthens your offer, and prepares you for a smoother transaction once you find the right home. Just remember that pre-approvals have a shelf life—usually 60 to 120 days—so timing is important as well as good communication with your loan officer.
If you’re thinking about buying a home soon, the best time to get pre-approved is before you start house-hunting. Reach out today, and we can connect you with a trusted loan advisor to help you begin your home search with confidence.