Emergencies occur when we least expect them, and to ensure long-term financial stability, it’s best to have a plan to weather them. When an emergency happens, be it a natural disaster, illness, or job loss, many people can find themselves struggling to keep up. Here are five essential tips to help you save for an […]
Moving Forward When Your Pre-Approval Letter Expires
Getting a pre-approval letter is an essential part of your search and purchase of a home. A pre-approval letter from your bank tells sellers that you are approved for a loan up to a certain amount, are serious about purchasing a home, and have a lender supporting you.
When your pre-approval letter expires, you might wonder what the next steps are, especially if you are still searching for a home.
Why Did My Pre-Approval Letter Expire?
As your lender should have told you, pre-approval letters are not forever, lasting from 30-120 days, depending on your lender. The reason being, banks and sellers need the most up-to-date information about you and your finances:
If pre-approval letters did not expire, then sellers would have no way to determine if the amount you claim to be approved for is current.
Apply For Another Pre-Approval Letter
When your first pre-approval letter expires, you will need to apply for another one before you can continue forward. You should also think about whether you want to reapply or wait to remove some debt and build up your savings for a down payment and closing costs.
If you do with to reapply, the process is not hard. Simply provide your bank with up-to-date information about your finances. If approved, you will be given a new pre-approval letter, expiration date, and loan amount.
The expert agents at Smart Mortgage stand ready to help you get pre-approved for a home loan and help guide you to the home of your dreams.