Has my pre-qualification expired?

I got a call from a borrower that had been pre-qualified for a San Francisco Home Loan with one of our other loan officers that has since left the company, and the borrower's question to me was, "Is my pre-qualification still good?". That is a tough question, and I think that the question warrants explanation of what a pre-qualification is, and what a pre-approval is. Check out this post for some more information, it is along the right lines. ( Larry Morris- he is sort of competition because I am licensed in Oregon, but who cares! He wrote a valid piece! ) Often times, we can submit your application to a lender to render some sort of approval, and some conditions, but it will be subject to future conditions by the underwriter.
I read a post earlier by Broker Bryant titled Let's call a Real-a-tor, they'll do anything! , where he talks about showing properties to people just because they ask. Realtors and Loan Officers, have to protect themselves in any case. For anyone in the business, time is money, and you have to maximize your time.
This relates to my phone call because this individual had been walking around town looking at property, with a 6 MONTH OLD pre-approval. Explanation of a pre-approval is important, for both people in the business (Agents), as well as consumers.
A pre-qualification is simply a verification from a qualified person in the mortgage business, that this person has provided the documentation required to obtain financing at this time. There are a number of things required to get this pre-qualification: providing the correct income and asset documents need, having a credit report from the 3 credit bureaus run, performing all verifications of employment, rent or prior mortgage payment, and any funds required to close. The list can go on and on. In the past, issuing a pre-approval had been a lot easier. Since lender guidelines have changed dramatically, full proof of all items is strongly encouraged. It isn't a "no brainer" any more.
Was the 6 month old pre-qualification good? Not at all, for a couple reasons. First off, I didn't take the application. The old employee could have done something wrong through the application process, and that missing information could be critical, especially today. Secondly, suppose the borrower 2 months ago missed a Credit Card payment, this is a serious effect on the otherwise clean credit. The missing a payment, shows recent weekness in finances, and will have a significant negative effect on the score. Thirdly, did this person change jobs in the meantime. If, for instance, the borrower was an employee prior, and just started his/ her own company recently. Regardless of income, the borrowers employment history is important.
There are a list of other possible things that could have changed. Everyone needs to make sure that you are protected, yes EVERYONE. The borrower shouldn't submit an offer and put money into escrow until the proper pre-approval is obtained because they could lose their earnest money deposit. Agents shouldn't show houses to someone that isn't pre-approved because they could be wasting their precious time. Sellers shouldn't be accepting offers without a pre-approval attached. Everything stems from that pre-approval, and nothing should take place until you have one from a qualified loan officer or broker. PERIOD!
If you were pre-approved in the past, it doesn't mean you are pre-approved now. Consult with someone you trust, and make sure that everything is in order, it WILL save headaches for all parties.

Here is a little tutorial of what type of documentation will be needed for a pre-approval. To get pre-approved you can call me directly, or visit my website to fill out a secure application:
w2's, 1099's, Tax Returns for the last two years (Depending on you employment type)
Asset documentation (Retirment, 401K, 403b, CD's, everything you have, because the more the better you will look to the bank)
Verification of Rent/ Mortgage - Most lenders will require you to document that you have made some sort of mortgage or rental payment for the last 12 months. This is a case by case, but providing what you have makes it easier.)
Employer Information- The mortgage professional will likely call your employer to verify you work for the company...if applicable
Credit Report - Most times this will be provided by the mortgage professional upon your authorization.
Schedule of Real Estate - If you own other property, you should be able to document leases on those properties if you indeed collect rent on the property. Leases work in most cases because tax returns could be reporting old leases.