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checka
She's here!
Member since 5/05 1769 total posts
Name:
Me
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Need Advice Please
I have no idea what I'm doing here as you will soon see.
Just a little background. Sellers accepted our offer a couple of weeks ago and they wanted a preapproval letter. We contacted a mortgage "broker" who someone I know recommended. Got my approval. We are signing the contracts tomorrow and we agreed to close around Dec. 1.
Ok so I found out yesterday that "broker" my friend recommended is not a broker but a mortgage company (don't ask  ). I ask her to quote me a rate which seemed high. I got other quotes today from other lenders also.
Now my questions are, when do you choose which lender you want to use? When do you apply for the loan, when you are ready to lock into a rate? We are more than 60 days out and I don't think it is worth it for us to try to get a 90 day lock. If we go with one of the lenders that quoted us, are they going to run our credit report AGAIN when we apply for the loan in a month? Since it's more than a 14 day span this would lower our credit score.
I'm so lost!
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Posted 9/7/05 9:06 PM  |
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Prudential Douglas Elliman Real Estate
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Need Advice Please
If you need the lower rate... then apply for another mortgage.
I heard inquiries within 30 days are considered "okay".
But regardless... even if it does lower your score a bit.... who cares? You will already have the house. When will the next time you need to get a mortgage?
And paying off your mortgage every month will raise your score in the end anyways.
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| Posted 9/7/05 10:10 PM |
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dengal
Dad of Twins
Member since 5/05 1385 total posts
Name:
The 80's Man
Let's Go Mets!
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Re: Need Advice Please
I agree - who cares about your score if you get the lower rate.
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| Posted 9/7/05 10:23 PM |
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MrsERod
Praying for Everyone.
Member since 5/05 26170 total posts
Name:
MrsERod™®
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Re: Need Advice Please
Posted by DjPiLL
If you need the lower rate... then apply for another mortgage.
I heard inquiries within 30 days are considered "okay".
But regardless... even if it does lower your score a bit.... who cares? You will already have the house. When will the next time you need to get a mortgage?
And paying off your mortgage every month will raise your score in the end anyways.
Pill...weren't you the one who was so adamant about saying someones credit score is NOT affected from inquiries made for the purposes of obtaining a mortgage????
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| Posted 9/7/05 10:28 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Need Advice Please
Posted by MrsERod
Pill...weren't you the one who was so adamant about saying someones credit score is NOT affected from inquiries made for the purposes of obtaining a mortgage????
No... I said (and you can quote me on this)... is MULTIPLE inquiries in a short span (within 30 days) should not lower your credit score any more than a single inquiry.
Every inquiry (its called a HARD inquiry) will drop your score whether its for a mortgage, car, cellphone, credit card, whatever.
Hell are you even aware that your credit now gets checked if you open a BANK account (like a checking or savings).
But multiple inquiries in a short span will do "less" damage on your credit report over spacing them out. In this case its called "mortgage shopping".
But of course... there is no written laws in regards to the credit score. Nobody really knows what makes it move up or down. But studies have given people the general idea.
But like I said... a mortgage is something thats worth dropping your score a bit if you can get a lower rate.
Hope this helps!
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| Posted 9/8/05 12:04 AM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Need Advice Please
I guess when I said they are "okay" above... I really meant its OK because it won't do too much more damage over what the initial inquiry did.
She already took the hard inquiry with the initial mortgage application. The secondary one will probably not be as bad.
But in the OP's story... it sounds like she is dealing with a shady individual... so its probably worth it to change banks regardless of what the credit score will do.
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| Posted 9/8/05 12:07 AM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Need Advice Please
A Good Read - Credit Score MYTHS
Here is a quote from the article. They actually say 14 days is your grace period... but like I said its worth it to get a lower mortgage interest rate.
Myth: Shopping around for a loan hurts your score. When you apply for a loan or get pre-approved the creditor checks your credit report, which shows up as an inquiry to your credit. While it's true that too many inquiries to your credit will lower your score, you absolutely can shop around for a mortgage, home equity loan or car loan without worrying about damaging your credit, said Sjoblad. "As long as the same kind of inquiries are made within 14 days of each other, they count as one inquiry on your credit score," he said. Take note: This grace period doesn't apply to credit cards.
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| Posted 9/8/05 12:14 AM |
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