There are 3 questions that we are asked more frequently than any others when doing pre-approvals for our clients.
1. How long is my pre-approval good for?
A: The answer to this question rests with the credit bureau. Whenever we do a mortgage pre-approval, we’re running a tri-merge credit report and that credit report is good for 90 days. We want to give you the pre-approval and have you backed on it probably within 60 days. This is because after 60 days, there’s a likelihood we may need to re-run your credit. To be safe, we advise 60 days or less.
2. What happens if I want to make any sort of changes or modifications to my existing letter?
A: The answer to this is based on our comfort level with your situation regarding your income and your debts. Whenever we do a pre-approval, we’re always going to aim on the conservative side. This means that we’re not going to push the amount that you can afford all the way to the limit. We do that because we understand that when people are buying a home, there are inevitably going to be some changes to their initial pre-approval. The most common change involves property taxes in the event that someone comes in without a specific property in mind. In other words, yes – we can make modifications to your pre-approval, but only if it makes sense and if it’s within the boundaries of debt and income ratios.
3. How far in advance do I need to start the process?
A: You don’t want to start too soon, and you don’t want to start too late. If you’re looking for an existing home, understand that the contract process takes somewhere between 45 and 60 days from the time of the initial offer and acceptance until the time of closing. You want to go out and look for a pre-approval a minimum of 30 days before that, but not more than 2 months. If you go further than 2 months in advance, you’re going to have to provide updated information to your mortgage loan officer which could create an inconvenience for you. The perfect time to start the pre-approval process is generally within 2 months of making the decision to buy a home, but probably more like 1 month.
Contact us for more information on obtaining your complimentary pre-approval.
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