A pre-approval runs on two clocks. The first is the expiration date printed on the letter, which the lender sets and which a seller's agent reads. The second is the age of the documents underneath it, which FHA, VA, USDA and Fannie Mae each limit to about four months at closing. The letter can be renewed as many times as you need, so a long search costs you a few fresh pay stubs and statements.
The two clocks side by side
| What ages | How long it lasts | Who sets it |
|---|---|---|
| The pre-approval letter | Commonly 60 to 90 days | The lender |
| Credit report | About four months at closing: 120 days on USDA, four months on Conventional | The program rules |
| Pay stubs | Same window as the credit report | The program rules |
| Bank statements | Same window, counted from the statement's closing date | The program rules |
The rate lock is a separate item. It starts when you lock, usually after your offer is accepted, and it runs for a set number of days that the lender agrees to.
A worked example: a search that runs long
Andre applies, and the lender pulls his tri-merge credit report that day. Call it day 0. His latest pay stub is dated 6 days before he applied, and his last bank statement closed 18 days before. The letter is good for 90 days.
He finds a home and goes under contract on day 82, which is still inside the letter's 90 days. With a 30-day closing, he signs on day 112. He's using a USDA loan, where the limit is 120 days at closing, and this is how old each document will be that day:
| Document | Age when he applied | Age on day 112 | Inside 120 days |
|---|---|---|---|
| Credit report | 0 days | 112 days | Yes |
| Pay stub | 6 days | 118 days | Yes, with 2 days to spare |
| Bank statement | 18 days | 130 days | No |
The bank statement is the one that runs out. Andre's lender asks for his newest statement during processing, which he'd be sending anyway to show his down payment is still there. If he had gone under contract on day 95 instead, the letter itself would have expired, and the lender would have reissued it after a quick look at his newest pay stub and statement. In practice, the lender asks for the latest pay stub near closing on every loan, so stretching a search past 90 days mostly adds a little paperwork.
What renewing looks like
A renewal takes a day or two, not a new application. You send your newest pay stubs and the latest statements for the accounts you're using. The lender reruns automated underwriting with the updated figures and issues a new letter. If the credit report will be past the program's age limit on your expected closing day, the lender pulls a new one. Mortgage inquiries made close together are generally scored as one, so a second pull during the same search usually costs little or nothing on your score.
The amount on the new letter follows your newest numbers. A raise at work, a car loan paid off or a credit card balance paid down can raise it. A new debt can lower it.
What makes a pre-approval stop working early
The expiration date assumes nothing about you changes. A few things can undo a letter before its date:
- New debt. A car loan, a store card or a personal loan raises your debt-to-income ratio and can lower your price.
- A job change. Tell the lender before you accept an offer. The job change page shows which moves are easy and which ones need time.
- A late payment. One 30-day late can drop a score enough to change the program or the price.
- A large deposit you can't document. Money that shows up without a source can't be counted.
Each of these has a fix, and the earlier the lender hears about it, the more options there are.
See where your income and debts land today with the affordability calculator. If your letter is close to its date, or you're about to start looking, call AAA Capital Funding at 888-601-8344 and we'll issue or refresh a pre-approval that's current on the day you write an offer.