What happens if my mortgage pre-approval expires

Whenever one is in the market for a home, he or she must get a mortgage pre-approval. But the fact that is not apparent to most homeowners is that mortgage pre-approval has a shelf life. Knowing what to expect when your pre-approval is up can definitely help you make some time, some money and a lot of effort. The following guide in this article from Welcome to the Lending Lounge will help you understand all that you need to know about mortgage pre-approval expiry and how to deal with it.

What Is Mortgage Pre-Approval Expiry?

Mortgage Pre-Approval Expiry relates to the time that is given before the pre-approval expires. Mortgage pre-approval usually has a validity of 60-90 days, and it is an initial step in mortgage financing approval process. Most especially, the expiration date depends on your credit report and your changes in certain aspects of your financial status. However, pre-approval letters only have a limited lifespan, and once they are expired, it means that you cannot use the current letter to get a mortgage without redoing the pre-approval.

Why Does Mortgage Pre-Approval Expire?

Mortgage pre-approval is usually good for about 90 days, but people are wondering why the pre-approval expires.
The following are some of the reasons that lead to the expiry of a mortgage pre-approval. Borrowers and lenders establish due dates to make sure that they have the most current and accurate financial data used when coming up with decisions. It is, therefore, always important that potential borrowers consider factors such as changes in income, credit score, debts or employment status, as these hurt borrowing powers. Third, market conditions, interest rates and lending policies may change and therefore, you need to review your financial situation.

What Happens When Your Mortgage Pre-Approval Expires?

The following are some of the possible outcomes when your mortgage pre-approval expires;
If your mortgage pre-approval expires before you get home, it doesn’t necessarily mean that your opportunity to purchase a home is over. But it does mean that you will have to start the pre-approval process from scratch. Such may require the client to upload the Paystubs, Tax returns, and Bank statements again, besides a new credit check. It is always advisable not to wait for something from FLO Mortgage or your loan officer before contacting and engaging with them so that you do not end up slowing down the process of buying your house.

How to Handle Mortgage Pre-Approval Expiry

1. Renew or Reapply for Pre-Approval: The easiest way out is to get a renewal of your pre-approval. You can get a new pre-approval letter and sometimes even improve your results by simply contacting the lender and updating your financial data. Relaxing the entire process is FLO Mortgage to help you through this process, and they are always available 24/7.
2.  Update Your Financial Documents: Get all the papers related to financial information, such as the latest paycheck stubs, recent bank statements, and the most current tax returns. Check the credit rating as it was when the application was approved because a worse rating can be a reason for a rejection or an unfavourable interest rate for a mortgage.
3.  Stay in Communication with Your Lender: It is always advisable to stay in touch with your lender, FLO Mortgage, particularly when there occurs a change in the market or your financial status regarding pre-approval.

Tips to Avoid Mortgage Pre-Approval Expiry

1. Start House Hunting Promptly: Once you get your pre-approval letter, do not waste time in looking for a home to buy.
2. Maintain Financial Stability: Do not apply for credit cards, loans, mortgages, or other credit facilities or participate in any publicity or events that are likely to affect your pre-approval status.
3.  Monitor Expiration Dates: The best way to ensure that a homeowner does not miss a home closing is to mark the date on their calendar and try to close the home sale a few days before the date.

Conclusion

It might seem counter-intuitive but if your mortgage pre-approval has expired, then it doesn’t have to be considered as a failure. As you will understand those timelines, you are able to stay ahead of the process and make the process rather smooth. At FLO Mortgage, we pride ourselves in assisting you maintain your ideal house buying process by ensuring that you are well assisted all through the process. If your mortgage pre-approval is just around the corner, it is advisable to consult FLO Mortgage for renewal services that won’t cause any stress.
Getting mortgage pre-approval does not have to be a complicated process, as the following real-life concepts show. FLO Mortgage will help you get the best solution to empower you to make better decisions and close on your home without any further delay.