Keeping Your Pre-Approval Up to Date: A Crucial Step in Home BuyingBuying a home is an exciting journey, but it can sometimes take longer than expected, especially in today’s competitive real estate market. As a potential homebuyer, one of the most important things to remember is keeping your mortgage pre-approval current. Here’s why this step is crucial and how to manage it effectively.
The Importance of Pre-Approval
A mortgage pre-approval is a lender’s indication that they’re willing to loan you a certain amount of money to buy a home. It’s a valuable tool in your home-buying arsenal, showing sellers that you’re a serious and qualified buyer.
Pre-Approval Expiration
Pre-approvals are typically valid for a specific period:
- It could be as short as 30 days
- Some lenders offer 45-day or 6-week pre-approvals
- Others might extend it to 90 days or three months
The exact duration will depend on your lender, so it’s essential to clarify this information upfront.
Staying Current in a Hot Market
In a competitive real estate market, finding the perfect home might take longer than your initial pre-approval period. If your search extends beyond this timeframe, you’ll need to work closely with your loan officer to keep your pre-approval current.
Why Updating Matters
Allowing your pre-approval to expire can have serious consequences:
- Missed Opportunities: You might find your dream home but be unable to make an offer because your pre-approval is no longer valid.
- Weakened Negotiating Position: Sellers may not take your offer seriously without a current pre-approval.
- Delayed Process: Restarting the pre-approval process can slow down your home buying journey.
How to Keep Your Pre-Approval Current
- Mark the Expiration Date: Note when your pre-approval will expire and set reminders.
- Communicate with Your Lender: Stay in touch with your loan officer about your ongoing home search.
- Provide Updated Information: Be prepared to supply recent financial documents if needed for renewal.
- Act Promptly: Don’t wait until the last minute to request an extension or renewal.
Remember, keeping your pre-approval up to date ensures you’re always ready to make an offer when you find the right home. It’s a small effort that can make a big difference in your home buying success.Whether you’re just starting your home search or have been looking for a while, staying on top of your pre-approval status is key. Happy house hunting!