What is the maximum age for credit documentation?

The maximum age for credit documentation is 90 days. This time frame is established because it reflects a balance between needing current information and the realities of the mortgage process, which can sometimes take time. Credit reports, for instance, can change and evolve rapidly, impacting a borrower’s creditworthiness. Therefore, requiring recent documentation ensures that the lender is making decisions based on the most accurate and up-to-date information available. A 90-day window aligns with the expectations that borrowers' financial conditions can remain stable within this timeframe without significantly fluctuating, and it serves to protect both the lender and the borrower during the loan approval process.

Longer timeframes, such as 120 days or more, could risk using outdated data for the credit decision, which could lead to unforeseen challenges or issues that arise from changes in a borrower's financial profile.