Mortgage approval - how long does it last?

M

Maybrick

Registered User
Messages
114
Sorry to ask a fairly basic question - but when a bank gives you mortgage approval, how long does it usually last before you have to renew or drop it? Is 3-6 months the usual standard? And is there a fee if you get approval but end up not using it?

Thanks,
Maybrick
 
Depends on lender.
1 month minimum, 3 months maximum.

No fee.

[broken link removed]
 
Interesting, thanks. Even 3 months sounds very short to me, given how long the house-buying process can take - did it used to be longer or has that always been standard?
 
As far as I'm aware, during the boom mortgage approvals generally stood for around 6 months, but when I went for approval about a year ago, they would only hold for 3 months, and even then they reserved the right to review. Each lender is probably different though, you should ask them.
 
Thanks - it makes me wonder, should you find a house first and then look for mortgage approval or the other way around? If they only give you a month or two, it really puts the pressure on to move fast - not realistic in the current market, I would have thought.
 
Get mortgage approval first. If your circumstances don't change in 6 months, they'll renew the offer or maybe amend it slightly given the economy. If you can't get mortgage approval, there's little point in looking for a house. All imho of course.
 
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