When embarking on your home search, obtaining a pre-approval for a mortgage is a crucial initial step. But how long does this pre-approval actually remain valid? Whether you’re exploring properties for sale in Austin, TX or preparing to make an offer on a residence in Seattle, WA, understanding the timeline for a pre-approval can assist you in planning your next move and avoiding any surprises.
This informative Redfin Real Estate article delves into the duration of mortgage pre-approvals, what occurs when they expire, and the process for renewal if necessary.
Understanding Mortgage Pre-Approval
A mortgage pre-approval is a formal letter from a lender indicating the amount they are willing to lend you for a home purchase. It is based on a thorough assessment of your financial status, including:
- Your credit score
- Income and employment background
- Debt-to-income (DTI) ratio
- Assets and liabilities
Unlike pre-qualification (a less formal estimate), pre-approval entails a hard credit check and verification of documents. Sellers often perceive buyers with a pre-approval letter as more committed and trustworthy.
>> Read: Pre-Approval vs. Pre-Qualification
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