Financing in New Jersey>Question Details

Bradley, Home Buyer in New Jersey

How long does a mortgage pre-approval last?

Asked by Bradley, New Jersey Tue Jan 8, 2008

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The length of time a mortgage Pre-approval is good for is based on the loan program being used, but at the same time a pre-approval is worthless.
You are substantially better off getting a conditional commitment with the property address as "to be determined" because it is a promise from the bank to lend you money, and makes any offer you submit for a home purchase much more substantial, giving you an upper hand in negotiations and/or battling other possible offers.
A Full Documentation mortgage (ie Fannie Mae, FHA, VA) commitment is good for 4 months from the day of the credit report used on the application.
A reduced documentation loan commitment or subprime loan commitment is usually good for only 60 days from the date of the credit report used on the application.
2 votes Thank Flag Link Mon Feb 4, 2008
Pre-approvals often last 30 days, but can be re-issued and reprinted in about 10 minutes from whatever mortgage pro gave it to you in the first place. As long as your FICO hasn't deteriorated, it's not a problem. Which brings up another point. Make sure when you are house hunting that you don't take on additional consumer debt. More debt equals a lower FICO for most people. So don't buy that new car until after you close on the new house.
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2 votes Thank Flag Link Tue Jan 8, 2008
I have seen them anywhere from 30 days to 6 months. It depends on the lender.
By the way, a preapproval is different than a prequalification. You definately want a preapproval.
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1 vote Thank Flag Link Tue Jan 8, 2008
As long as your financial information doesn't change and the loan program is still around, indefinately.....
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0 votes Thank Flag Link Mon Feb 11, 2008
Diane is right, however, these days very few lenders, if any, will honor pre-approvals older than 30 - days.
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0 votes Thank Flag Link Tue Jan 8, 2008
ARTUR URBANS…, Real Estate Pro in Burlingame, CA
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