How Long Is My Home Loan Pre Approval Good For?
It isn’t enough to be mentally prepared to purchase a home. There is also a strategic approach that will set you up for success. The way I look at it, how long we get your Pre Approval for is whether you are a checkers or a chess player. Let me explain.
Mortgage Pre Approval Timeline
Once you have taken the step to complete a mortgage application; it is time to ask you a question. You’ve submitted all of your information to a Mortgage Broker, it has been vetted through expert eyes, and we’ve selected the top three lenders based on your borrowing preferences.
But there is still this question…
I have advised you that two out of the three lenders have a 90 day rate hold but the third has a 120 day rate hold. There are also other areas that are very important to you like: interest rate, skip a payment provision, mortgage portability, and how your pre-payment options are treated.
I know…I know…the question…
My question to you is: Are you a chess player or a checkers player? I know, a strange question for a real estate purchase transaction. But stick with me here. There is a reason this question is so important.
Pre Approval Death By Analysis
I have worked with hundreds if not thousands of potential mortgage holders. They all ask how long the home loan Pre Approval will last. What they don’t ask themselves is what they will do over the next 90 days after we secure the Pre Approval.
Checkers Player Approach
If you are a checkers player you know that this is a game of speed and there is strategy involved however the game typically doesn’t take more than 20 minutes to be completed.
I have clients who see 10 properties in the first few weeks of their home search and usually make an offer on up to three of them. If lady luck is on their side, they have a firm purchase by the end of week two and the closing date is within a couple of months so we are well within the standard 90 days provided by most lenders.
Chess Player Approach
If you are a chess player then you know that that same game can be sitting there for weeks, if not months after it began.
I have clients who look at many properties. Few meet their standard or investment criteria. And even less receive an offer. 90 days seems to pass in a flash. This client believes time is a tool that will yield the diamond in the rough they are looking for. A standard Pre Approval may not be the best strategy for this client’s home purchase process.
Find out more about all the things you need to know about your Mortgage Pre Approval.
Mortgage Pre Approval Strategy
So we have learned that the standard Mortgage Pre Approval timeline is 90 days or about three months. There are exceptions however this is only one aspect of finding the best mortgage for your situation.
I love to run scenarios and models to assist my clients in coming up with simple and effective strategies towards their best home purchase. Find a Mortgage Broker that invests their time in understanding your approach and is willing to give their best for you, no matter the timeline.
I can see that game board now, we have moved you from playing the real estate game, to mastering it. I am so grateful to be of assistance to you towards this end. Please contact me now to get started.