Mortgage pre-approval letters have expiration dates, but that doesn't mean you need to start over when yours expires. At The Penland Team, our pre-approval letters are generally valid for 90 days, while your mortgage application stays active for up to 12 months. Updating your letter typically takes a quick 5 to 10-minute conversation and any necessary documentation updates.
The 90-day letter versus the 12-month application
These are two different things, and the distinction is where The Penland Team's process saves you frustration. The 90-day approval letter is what you show sellers and agents, and it says you have been pre-approved up to a certain amount. The 12-month application is your complete mortgage file, which stays active with us for up to 12 months. A buyer whose letter reaches 90 days does not automatically have to reapply.
The 90-DAY approval letter | The 12-MONTH application | |
|---|---|---|
What it is | The document you show sellers to prove you have been pre-approved | Your complete mortgage file held by The Penland Team |
Valid for | 90 days from the date it is issued | Active for up to 12 months |
When it expires | It expires after 90 days | It may need to be completed again after 12 months |
Next steps | A quick update call and a refreshed letter | You generally do not need a new application during those 12 months |
Your pre-approval is based on your financial situation today
Your pre-approval reflects your finances at a single point in time. If something changes, the approval may need to change too. Before making a significant financial move, give your lender a quick call if you:
Change employment, income, or compensation structure
Open new credit accounts, co-sign loans, take on debt, or significantly increase credit card balances.
Spend savings or receive significant assets or gift funds
Change your planned down payment
A mortgage approval weighs your income, employment, credit, debts, assets, and down payment, so any shift can affect your loan amount or monthly payment. You do not need to put your financial life on hold while house hunting, but a quick call helps us adjust the plan before it becomes a problem.
How rates, taxes, and insurance affect your purchasing power
Even if nothing changes with you, mortgage rates can shift while you shop. A higher rate increases your monthly payment and reduces purchasing power, and property taxes, insurance, and HOA dues vary from one home to the next. That is why an older approval should be reviewed before you make an offer.
Realtors: Verify Pre-Approvals Before Submitting Offers
If a buyer was pre-approved months ago, have the lender refresh the approval before submitting an offer. The goal is not to create a hurdle, it is to confirm the buyer still qualifies at current market rates and with that specific property's taxes, insurance, and HOA costs. The Penland Team usually makes this a quick process for an existing approved buyer.
Why getting pre-approved early is still a good idea
Do not let the fact that approval letters expire discourage you from getting pre-approved early. Starting early gives you time to understand your price range, compare down payment options, and review your mortgage credit before you find a house.
At The Penland Team, we start with a soft credit pull that allows us to review your actual mortgage credit scores without creating a hard inquiry on your credit report. We generally don't complete a hard credit pull until you're under contract on a home. This allows you to get pre-approved early, understand your purchasing power, and shop with confidence without an upfront hard credit inquiry.
Whether you're planning to buy next month or six months from now, getting pre-approved early puts you in a stronger position. Schedule a 15-minute introductory call with Josh Penland and The Penland Team to review your options and build a financing strategy that works for you.
About the Author
Josh Penland is Branch Manager and Senior Loan Officer at The Penland Team at Fairway Home Mortgage (NMLS #216357). With more than 23 years of mortgage experience, Josh has helped homebuyers throughout Texas and the other states where he is licensed understand their mortgage options and build a financing strategy before buying.
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