A pencil and calendar.

What if my mortgage pre-approval expires?

Mortgage pre-approval is a written commitment of how much you’re qualified to borrow to buy a home. In a competitive market, pre-approval can give you an advantage over unapproved buyers because it shows you won’t have problems getting financed for the amount you’re offering. In addition to the type of loan, maximum loan payment, loan interest rate and estimated monthly payment, pre-approval letters include an expiration date. Once you’re pre-approved, you can start your new home search with confidence. But what happens if you don’t find the right home before your pre-approval expires? We’re here to walk you through the details of how long pre-approval lasts and the straightforward process of what to do when it expires.

When does pre-approval expire?

When you receive your pre-approval letter, you’ll notice it includes a date indicating it’s only good for a certain amount of time. The exact length of time depends on your situation. Once your loan officer confirms your pre-approval length, you’ll want to work with your real estate agent to set your closing date before it expires. If your pre-approval is about to expire while you’re still out house-hunting, let your loan officer know right away so you can keep shopping, knowing you are covered.

What happens if I don’t use my pre-approval?

On average, it takes nearly five months to search for a home. Getting pre-approved can speed up the homebuying process by narrowing your search to homes within your price range. In addition, because pre-approval includes submitting a loan application and securing financing, it can accelerate the closing process. However, don’t worry if you don’t use your pre-approval in time. Your house-hunting doesn’t have an expiration date just because your pre-approval does. Just let your loan officer know before your pre-approval expires.

What to do if your pre-approval expires

To determine pre-approval, your credit history, employment, assets, earnings and debts are reviewed. Because your financial and employment situation can change over time, be sure to alert your loan officer to any changes that may affect your mortgage application.

If your pre-approval expires, you may need to provide additional documents, such as your latest bank statements. These documents are used to examine recent deposits and withdrawals and ensure that you have enough funds to cover your down payment. Once your information is received and reviewed, you’ll get a new pre-approval letter, and you’ll be issued a new pre-approval with a new expiration date.

Guild’s innovative Homebuyer Protection Package* combines three of our loan programs and services, effectively allowing homebuyers to protect their earnest money and closing date. Credit Approval Protection gives buyers, agents and sellers added confidence in Guild’s pre-approval process. If Guild issued a preliminary underwriting credit approval and is then unable to close on the borrower’s loan, we will pay the borrower up to $1,000 for inspections, appraisals and relocation expenses incurred. Guild will also reimburse the borrower for their lost earnest money deposit, up to $5,000. Under Homebuyer Express with 17 Day Closing Guarantee, Guild will pay qualifying customers $500 toward closing costs if delays solely by the company prevent the loan from closing on time, in 17 days or more. Strengthen your offer by incorporating information about this added protection in your offer letter. Finally, Guild will lock in the borrower’s interest rate for 90 days while they shop for the perfect home with the Lock and Shop Program. If rates go up, the borrower’s rate won’t change. If rates go down, the borrower may be eligible for a one-time rate float down option.

*Homebuyer Express is not available in Oregon. For full terms and conditions, visit www.guildmortgage.com/cap-hbe-terms/.

The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.

Share this story, choose your platform!

About the Author: Guild Mortgage

Founded in 1960 when the modern U.S. mortgage industry was just forming, Guild Mortgage Company is a nationally recognized independent mortgage lender providing residential mortgage products and local in-house origination and servicing. Guild’s collaborative culture and commitment to diversity and inclusion enable it to deliver a personalized experience for each customer. With more than 4,000 employees and over 250 retail branches, Guild has relationships with credit unions, community banks, and other financial institutions and services loans in 49 states and the District of Columbia. Guild’s highly trained loan professionals are experienced in government-sponsored programs such as FHA, VA, USDA, down payment assistance programs and other specialized loan programs. Guild Mortgage Company is a wholly owned subsidiary of Guild Holdings Company, whose shares of Class A common stock trade on the New York Stock Exchange under the symbol GHLD.