How long does pre-approval last? | Can you be denied a loan after pre-approval? | Speeding up pre-approval | Why you need a mortgage pre-approval
It can take 5–10 days to secure a mortgage pre-approval. A straightforward application may be approved in 3–5 days, while a more complicated situation could take two weeks or longer.
How long it takes to get a mortgage pre-approval depends on how fast you and your lender can gather and evaluate your financial documents. Approval is based on your gross monthly income, debt payments, assets, credit reports, and employment history.
Getting a mortgage pre-approval letter provides you with a home-buying budget and shows sellers you’re serious about buying.
How long does a mortgage pre-approval last?
A mortgage pre-approval is usually good for 90 days, though some lenders can issue a pre-approval for 30–60 days. The expiration date will be in your pre-approval letter, along with other terms and conditions, like how much you’re approved to borrow and your interest rate.
Mortgage pre-approvals expire because your financial situation can change within the approval window. For example:
- You could open a new credit card, which could lead to a lower credit score.
- Your job or level of debt compared to income could change.
- Mortgage rates could fluctuate, so the rate you were quoted initially could affect your final approved amount.
Maintain communication with your lender. If your mortgage pre-approval expires before you make an offer on a house, you’ll need to apply again. And you might need to provide updated documents or resubmit the necessary paperwork.
Can you be denied a loan after getting a mortgage pre-approval?
Yes, you can be denied a loan after getting a mortgage pre-approval. This can happen if your financial situation — like your credit score, income, or debt level — changes significantly between applying for pre-approval and officially getting approved.
If possible, try not to make large financial decisions or purchases during your pre-approval window.
How to speed up mortgage pre-approval
1. Gather documents early
Collect all your documents in one place so you can submit your application faster. Most lenders will ask you for documentation to verify your:
- Identity — a driver’s license or Social Security card, as well as a list of recent (within the last two years) addresses and time of occupancy at each
- Income — tax returns, including W-2s from the past two years
- Employment — a written letter or contact information from employers
- Assets — bank statements from the past 2–3 months as well as investment or retirement accounts, such as 401(k)s, IRAs, or mutual funds
- Liabilities — loan statements from the previous two months, including for student debt, car payments, and credit cards
- Down payment funds (if applicable) — a down payment gift letter to prove the funds aren't a loan from someone who has a stake in the home purchase
Other information to have handy
Estimated price of the property. You’ll want to know an estimate of how much you can afford. Ask your lender what the minimum down payment required is.
Type and purpose of the property — i.e., whether this will be your primary residence, a secondary home, or an investment property. Lenders have different rates and requirements for different property types.
Your debt level. A lender will check that your debt (mortgage payment, car loan, student loan, etc.) makes up no more than a certain percentage (usually 36%) of your total pre-tax income.
2. Choose a mortgage lender that's fast
Ask mortgage lenders directly about how long it takes them to grant pre-approval.
Lenders may be faster if they can easily upload documents, accept e-signatures, and use other time-saving technology. They may also have excellent customer service and be more readily accessible for support throughout the process.
If you're trying to find a good lender online, check customer reviews on Google, Facebook, and the Better Business Bureau. Good lenders should have a decent number of positive ratings. Look specifically for comments about speed and customer service.
You can also ask someone you trust — such as a friend, family member, or realtor — for lender recommendations.
Why you need a mortgage pre-approval
Getting pre-approved establishes financial certainty for both you and home sellers. We highly recommend getting a mortgage pre-approval to help set a realistic budget and show sellers you’re serious about buying.
Pre-approval involves setting a specific budget for your home purchase, which makes shopping and comparing potential homes with realtors easier. Some sellers may even ask for pre-approval before agreeing to show their home.
Pre-approval also increases credibility with the seller because it indicates you'll qualify to buy a house (pending an appraisal, contingencies, and final underwriting).
Don’t panic if your credit score drops during a mortgage pre-approval check!
When lenders check your credit — often called a "hard credit inquiry" — you can expect your credit score to drop by up to five points. This impact is minimal compared with how much you save by getting the best deal from a lender.
Lenders can see the credit checks run by other lenders, so any additional checks that fall within the pre-approval window will count as a single inquiry.
Unlike mortgage pre-qualification, pre-approval is a deep dive into your finances BEFORE you put an offer on a home. And although getting a pre-approval doesn’t guarantee you'll immediately make an offer, it gives a clear indication that you're ready to buy.