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How Early Is Too Early for Home Loan Pre-Approval?
When it comes to applying for a mortgage, getting pre-approved for financing and starting the credit application process should begin as early as possible. The sooner you get a jump on the process, the fewer problems you'll have when it's time to close and sign on the dotted line.
But is it possible to apply too early? Our REALTORS® know the answers, and we've put together some of our expertise to help you apply for your mortgage financing at an optimal time for your home purchase.
How Long Does Pre-Approval Take?
Before you decide how early to apply for a mortgage, we should help you understand how long the pre-approval process takes.
Generally speaking, and depending on the lender, mortgage pre-approval can take as little as 24 hours or up to a week. Pre-approval is primarily digital and doesn't require much more on your part than filling out an online mortgage application and submitting it to your mortgage lender.
Pre-approval itself doesn't take very long as long as you're on top of your game when it comes to your application.
How Long Does Pre-Approval Last?
What may affect you more than anything when it comes to pre-approval and getting pre-approved too early is that pre-approval does expire. For the most part, pre-approval will last a maximum of between 90-120 days. In other words, you have as many as three to four months to actually purchase a home and execute on your line of credit.
The reality of the matter, though, is that pre-approval starts to go stale after about 30 days. Even if it's still technically valid 90 days later, many lenders will likely require a new application to make sure your credit history is accurately reflected.
If you know you're going to be purchasing a house about a month out, then go ahead and get pre-approved to help you see what you can spend on a home.
Pros and Cons of Early Pre-Approval
Getting pre-approved as early as you can is always a good practice when purchasing a home. After all, many real estate agents will only show you homes after you've been pre-approved and can prove that you'll be able to close on a home. That alone is reason enough to get pre-approved as soon as you're ready to start searching for a home.
While there are very few cons of getting pre-approved as soon as possible, depending on what mortgage solution you're looking into may depend on what sort of interest rate you get. One significant advantage of pre-approval is locking in an interest rate in an otherwise volatile mortgage market.
On the other hand, you may want to watch the mortgage market and wee where mortgage rates are trending before getting pre-approved. Timing is everything when it comes to locking in the best rate, so talk to professional lenders and make sure you apply at an optimal time.
If you've already been pre-approved and you're ready to pull the trigger on a home, then contact us to see our current inventory of Mansfield homes for sale. Our agents are ready to help you find your dream home, so get in touch today!
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