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I started working in mortgage lending when I was 18, right after I finished working as a server. I've seen thousands of buyers go through the preapproval process in that time. What do people ask me the most? "How long do I have before this thing runs out and I have to start over?"
That worry makes sense. Especially now, when first-time buyers are having a harder time than ever before.
Preapproval is not the same as prequalification. Let me explain the difference because people always get them mixed up.
Prequalification doesn't take long. You tell the lender how much money you make, how much you owe, and what you own. They do a soft credit check, which doesn't hurt your score. You get a rough idea of the number of hours or days. But it's based on information you gave yourself that hasn't been checked.
Proof is needed for preapproval. Hard copies of documents. The lender gets your real credit report, which does have a short-term effect on your score. They check your pay stubs and W-2s to make sure you have enough money. They look at your bank statements. They check to see if you have a job. After that, they make a conditional promise for a certain amount of money.
The National Association of Realtors' 2024 Profile of Home Buyers and Sellers says that first-time home buyers now make up only 24% of all buyers. This is the lowest percentage since tracking began in 1981. You're up against repeat buyers who have a lot of equity and can make better offers. You have to have a good preapproval letter now.
When you apply, you should be ready to give:
Most lenders give preapprovals that are good for 60 to 90 days. Some last as little as 30 days. We usually give approvals within 90 days at AmeriSave.
Why is there a time limit? Your money can change quickly. You could get a new job. Get more debt. Take all of your money out of savings. Don't pay. All of these things have an effect on your qualifications.
According to research by the National Association of Realtors (NAR), home buyers usually spend about ten weeks actively looking for a home before making an offer. According to REsimpli's market survey, first-time buyers looked for a home for an average of three months in 2024. A 90-day preapproval covers most timelines, but 30 days makes you rush.
If you lose your job while you're getting preapproved, your approval is probably no longer valid. You'll have to get a new job and pay stubs from that job before you can requalify.
Did you buy a car? Got a credit card and had a balance? This will change your debt-to-income ratio (DTI). If you go over the lender's DTI limit, which is usually 43% for conventional loans, you might not get as much money or any money at all.
Two weeks before closing, I helped a buyer who co-signed a $28,000 car loan for their adult child. The deal almost fell through because it changed their DTI. We were able to save it, but it took more paperwork and delayed closing by ten days.
You should definitely get preapproved by more than one lender. The Consumer Financial Protection Bureau says you should talk to at least three lenders to compare rates and terms.
But won't having more than one credit check hurt your score?
Credit scoring models know how to shop around for rates. They made a special window where more than one mortgage inquiry counts as one.
Models for FICO scoring:
Models of VantageScore:
Because you don't know which model your lender uses, the safe bet is to go with U.S. Within 14 days, News & World Report will have finished all of its rate shopping.
Over the course of ten days, I had a borrower apply to five lenders. Her credit score went down by exactly three points. What if she had spread those out over three months? Could have caused 15 to 25 points of damage.
Let's say your gross income is $8,000 a month. You owe money to:
The DTI ratio is 41.9%, which is $3,350 divided by $8,000.
That's less than the 43% limit for regular loans. But what about a new $650 car payment? You jump to 50% and probably get turned down.
Use this when you're 30 to 60 days away from actively looking at homes and making offers. Not before, not after.
Too early means:
"Too late" means:
One client was approved six months ahead of time. By the time they found their house, the letter had already been sent twice. Every time you renewed, you had to give new statements and have your credit checked again. Three hard inquiries over the course of six months instead of one big one.
According to NAR's 2024 data, the average age of a first-time buyer is now 38, up from 35 in 2023. The average income of these buyers is $97,000. They are older and making more money, but it takes them longer to save for down payments, which makes it even harder to get preapproval on time.
You'll need to renew your preapproval if it runs out before you find a house.
The steps are:
The lender already has most of the information they need, so this is faster than the first 7–10 day process.
If you want to, you can extend your current preapproval.
If you need a new preapproval,
You can't do the following things during your preapproval period.
Things you can't do:
Things that need to be done:
The housing market in 2025 is different. The CFPB's 2023 Mortgage Market Activity and Trends report says that the number of mortgage applications fell by about a third from 2022 to 2023. The number of new single-family refinance loans dropped by almost two-thirds.
This means:
Sellers are more picky. Because there aren't as many buyers, they are more picky about who they work with. When lenders write strong preapproval letters, they mean more.
Most buyers pay in cash. The National Association of Realtors (NAR) says that the market is split between first-time buyers who are having trouble getting in and current homeowners who are paying cash. To compete, buyers who are getting loans need very strong preapprovals.
First-time buyers have more problems to deal with. The median down payment was 9% in 2024, the highest level since 1997. According to REsimpli, that's an average of $8,220. Preapproval shows that you have passed the financial tests.
When you send in an offer with preapproval, sellers look at:
At the new average age of 38, buying your first home is hard in its own way:
Preapproval is getting harder:
If you need to sell your current home first:
Preapproval with conditions. Some lenders will preapprove you if you sell your current home.
Thinking about a bridge loan. You might need bridge financing to buy before you sell in a hot market. This needs a different kind of approval.
Calculating equity. Lenders figure out how much equity you have based on the sale of your current home and use that information to help you make a down payment and pay off your debts.
Buyers get preapproved and then buy furniture for their new home. That couch that costs $3,500? It's now on your credit report as debt, which could put you over your DTI limit.
Fix: Don't buy anything big until after closing.
It can be hard to change jobs while you're still waiting for approval. Lenders want to see a steady work history.
Fix: If you have to change jobs, stay in the same field and try to make more money. Write down everything. Don't keep it a secret; tell your lender right away.
People think that closing old credit cards or opening new ones is good for their credit. Doesn't usually.
Fix: Don't touch your credit during preapproval and closing unless your lender tells you to.
Your aunt gives you $5,000 to help you with the down payment. You put it in the bank. The lender sees a random $5,000 and needs to find all the money.
Fix: Write down everything. Get a letter of gift. Before you make any deposits, let your lender know.
We know what buyers go through, so we've made the process easier.
How we do things:
We are licensed in 49 states, so we know how to deal with the differences in each market. We can help you get preapproved whether you live in a hot market where homes sell quickly or a slower market where you have time to negotiate.
We also offer Verified Approval, which includes a more in-depth review of your finances that shows sellers you're not just preapproved, but also ready to close. This sets your offer apart from others in competitive markets.
Most of the time, mortgage preapprovals are good for 60 to 90 days. That gives you time to look for a home, make an offer, and start the closing process.
You can get the most out of your preapproval by being smart about when you apply, shopping around for lenders in a short amount of time, and keeping your finances stable.
The market is still tough, especially for first-time buyers, who only make up 24% of all purchases. But if you get a strong preapproval from a reputable lender, you'll be able to compete well.
Don't wait until you find your perfect home. It's too late by then. Get ahead of the game, know your budget, and be ready when the chance comes.
Are you ready to start? Get preapproved with AmeriSave today and take the first step toward buying a home with confidence.
I'll be honest: writing about preapproval timelines isn't the most interesting thing I've done this week. But it does matter. If you get this right, you won't have to deal with heartbreak when you find your dream home but can't close the deal fast enough.
According to industry standards from big lenders like Chase, Bank of America, and SoFi, most mortgage preapprovals are good for 60 to 90 days after they are issued. Some lenders give approvals that last only 30 to 45 days, while others give approvals that last up to 90 days. The amount of time depends on the rules of your lender and the state of the market. We usually give buyers 90-day preapprovals at AmeriSave so they have enough time to find homes without feeling rushed.
The validity period is there because money situations change quickly, like when you get a new job, take on more debt, or your credit score goes up or down. When you're ready to close, lenders want to know what's going on right now. According to NAR data, home buyers usually spend about 10 weeks actively looking, so a 90-day preapproval is enough for most timelines.
Yes, and you should look at more than one lender. When looking for a mortgage, the CFPB says you should talk to at least three lenders. Credit scoring models know that people shop around for mortgage rates, so they give you a special protection window where multiple inquiries count as one hard inquiry on your credit report.
Experian says that newer FICO models let you shop for rates for 45 days, while older FICO models and VantageScore only let you shop for rates for 14 days. You usually don't know which model your lender uses, so finish all your shopping in 14 days. You can apply with as many lenders as you want during this time—three, five, even ten—and they will all be counted as one inquiry. Chase's mortgage resources say that the short-term effect is usually between 0 and 5 points. If you use credit wisely, this small drop will go back up in a few months.
You will need to renew or apply again. The renewal process usually goes faster than the first preapproval because your lender already has most of the information they need. Send in your most recent pay stubs, bank statements, and any changes to your job or finances.
American Family Insurance's home buyer resources say that renewing also requires another hard credit inquiry, which can lower your score by 0 to 5 points. The process usually takes a few days to a week, which is faster than the first 7–10 days. Most lenders, like AmeriSave, make renewals easy because they already have verified bulk financial profiles. If your finances got better—by paying off debt, raising your credit score, or making more money—renewal might mean a higher approval amount.
Apply when you have 30 to 60 days before you start looking at homes and making offers. This gives you time to get your letter, compare lenders if you want to, and start looking for a home seriously while your approval is still fresh.
If you apply too early, like six months before you're ready, your approval will run out, and you'll have to renew it several times with new credit checks and paperwork. Every time you renew, things get more complicated, and your score could go down. In competitive markets where homes get multiple offers in a matter of days, applying too late puts you at a disadvantage. Sellers prefer buyers who have their financing in place and can close quickly. According to NAR data, first-time buyers looked for homes for an average of three months before buying in 2024. Average buyers across all categories looked for homes for about ten weeks. A 90-day preapproval fits with most timelines.
No, preapproval is a promise that depends on certain conditions. The "conditional" part is very important. Your lender looked at your finances at a certain time and decided that you could borrow a certain amount, as long as nothing major changes.
But there are a few things that can make preapproval invalid. Before closing, lenders check your financial information again, usually a few days before your closing date. If they find out you have new debt, a new job, less savings, or a lower credit score, they can lower the amount of your loan or deny it altogether. I've seen deals fall through just days before closing because buyers changed their finances in ways they didn't know would affect approval. Some things that make preapprovals invalid are getting a loan for a car, opening a credit card and carrying a balance, making large deposits without explaining why, missing payments, co-signing a loan, or changing jobs. Some changes are unavoidable, but don't hide them from your lender; tell them right away.
Yes, most lenders will give you more time if you haven't found a home and your finances are still stable. If you want to extend, you usually need to send in updated pay stubs and bank statements, and maybe even another credit check if a lot of time has passed since you were first preapproved.
Extensions are usually given when you show that you are actively looking for a house and just haven't found the right one yet, not when you are just browsing or waiting. Lenders want to know that you mean business. At AmeriSave, we help buyers who need extensions because it takes time to find the right home, especially in competitive markets with few homes for sale. But extensions don't happen automatically. If your finances get worse, you haven't actively searched, you've asked for multiple extensions that last more than six months without getting any offers, or market conditions change a lot, lenders may turn down your requests.
Some lenders use the terms "prequalification" and "preapproval" interchangeably, but they are not the same thing.
Prequalification is a quick and informal process that uses information about your finances that you give yourself. It only requires a soft credit check, which doesn't affect your score, doesn't need any proof of documents, and takes anywhere from a few minutes to a few hours. Prequalification gives you a rough idea of how much you might be able to borrow, but it doesn't mean anything because nothing is verified. Think of it as a first talk where you tell the lender how much money you make and what you own, and they give you an estimate.
Preapproval is strict and requires proof of information through a review of documents and a hard credit check. You give them pay stubs, W-2s, tax returns, bank statements, and permission to check your credit. The lender looks at everything and agrees to lend a certain amount of money, but only if certain conditions are met. This takes 7–10 days and gives you formal letters to send with your purchase offers. Preapproval lets sellers know you're a serious buyer who has the money to buy. You need to get preapproval before you can buy a house.
To get preapproval, you need to give lenders a lot of financial information so they can check your income, assets, debts, and creditworthiness.
Income verification: Pay stubs from the last 30 days, W-2 forms from the last two years, tax returns from the last two years (especially if you are self-employed), 1099 forms for contract work, award letters for Social Security, disability, or retirement income, and alimony or child support documentation if you need it.
Asset documentation: Bank statements from the last two to three months for all accounts, investment account statements, retirement account documentation if you're using the money for a down payment, and gift letters if you're getting help with the down payment from family or friends.
Proof of employment: a letter from your employer, a business license, and other paperwork if you're self-employed. If you've been out of work for a while, you need to write an explanation letter.
Credit authorization: a Social Security number to get a credit report and permission to pull credit from all three bureaus.
Extra paperwork: a photo ID and letters explaining things that are out of the ordinary, like big deposits, credit checks, or changes in your finances. The faster your approval goes, the more organized your paperwork is. Our secure online portal makes it easy to upload documents at AmeriSave.
If you change jobs during preapproval or before closing, it can have a big effect on whether or not your loan is approved, but it doesn't automatically disqualify you. Lenders look at timing, industry stability, and income growth when deciding whether to lend money.
In the best cases, there are no problems: you stay in the same industry and make the same or more money, you go from hourly to salaried and make more money, you get promoted within the same company, or you move after closing on your purchase.
Some bad situations are switching industries completely, going from salary to commission-based work or self-employment, taking a job with a lower base salary, quitting a job voluntarily without having another one lined up, or being laid off or fired.
If you have to change jobs while you're buying a house, tell your lender right away. Don't keep it a secret. They'll need proof of your new job, recent pay stubs, and maybe even a written explanation. Some lenders won't verify your income until you've been working in your new job for 30 days, which can delay closing. Self-employment can be hard because lenders usually want to see two years of tax returns to prove that you have a stable income. What is the safest way? If you can, wait until after closing to change jobs.
Fannie Mae and Freddie Mac say that most conventional loans need a credit score of at least 620. But better scores mean better rates. According to HUD rules, FHA loans can accept scores as low as 580 with a 3.5% down payment or 500–579 with a 10% down payment.
Your credit score has a direct effect on your interest rate. CFPB data shows that borrowers with scores above 760 usually get the best rates. On the other hand, borrowers with scores between 620 and 679 pay much higher rates, usually between 0.5% and 1.5% more. That difference costs $40,000 to $80,000 over 30 years on a $400,000 loan. If your score is below 620, work on getting it better before you apply. Pay off credit card balances that are less than 30% of their limits, make all of your payments on time, fight mistakes on your credit report, and don't open any new credit accounts. Raising your score from 640 to 680 can save you thousands of dollars in interest over the life of your loan.
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