What is the maximum allowable time for a mortgage application to be valid before re-evaluation is necessary?

A mortgage application remains valid for 60 days before a re-evaluation is required. This timeframe is significant because it allows lenders to assess the borrower's financial situation and the property involved in the mortgage transaction while considering market conditions and interest rates. After 60 days, the lender may need to update documentation and verify the borrower's current financial status to ensure that the information is still accurate and meets underwriting guidelines.

This 60-day period aligns with industry standards, creating a consistency in processing applications, which helps both borrowers and lenders manage expectations. Understanding this timeframe is crucial for anyone working in mortgage origination to maintain compliance and ensure a smooth loan process for clients.