Credit Score in New York>Question Details

djdave718, Home Buyer in Brooklyn, NY

I've been told you can get several pre-approvals in a certain time period where as it only affects your credit once. Is this true?

Asked by djdave718, Brooklyn, NY Mon Mar 25, 2013

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Lowell Sterling’s answer
So why would you want to run around town spreading your information with different brokers. This is exactly how you open up yourself to credit fraud. Have one broker pull your credit and provide you with a copy of the report then verbal the information to everyone esle. And shopping for a moving target is almost impossible. If you were to have asked me this AM at 09:30 what was the rate for a 30 years fixed rate with 20% down i would have told you 3.5% now if you call me back at 10:00 Am i would quote you 3.25% and at 4:00 PM 3.125% and more than likely in the AM i will be looking at 3.5 or close. Its best to find an honest lender and asked him to float your rate and if it reaches say 3% lock for 30 days. Asked about his float & lock changes.

BUYING A HOME (The process start with the Banker not the Realtor)

Start the process right 1st by talking to a Licensed Mortgage Professional to determine who much home you can afford and whether you are credit wordy and is there an ability to repay the loan.

The Mortgage Professional will give you a conditional approval letter to take to the realtor.

Once the realtor has found your home you should get it inspected to determine if it’s structurally safe (have the realtor recommend one locally) and be sure to ask your realtor to negotiate a home warranty paid by the seller.

Now is the time to determine and negotiate you rate and terms with the Loan Officer who is responsible to order an appraisal that you will be responsible to pay for prior to the arrival of the appraiser.

You’re Mortgage Professional / Loan Officer will be responsible to guide you the rest of the process and should not take more than 30 days.

Wherever you're located in this nation, you can trust you're working with a reputable mortgage banker - not a fly-by-night operation. Here's why.

Bank of England is partners with every major investor on Wall Street; allowing us to provide the best rates and terms on all mortgages.

We are approved by the Better Business Bureau and Bank of England /ENG Lending is the only mortgage bank among its competitors that is owned by a FDIC insured bank and did not need government bailout to remain solvent.

Bank of England loan officers don't simply facilitate the loan process; they act as "financial advisors," helping clients assess their finances on a larger scale. Whether you're self-employed and need a low-doc mortgage loan, or you're searching for the best rates on a jumbo home loan, your loan officer is here to find your perfect solution.

Get the facts about home mortgages from the experts at ENG Lending. Learn about different types of home mortgage loans and what to expect during the mortgage application process. Plus, find information about the current mortgage market and which mortgage myths you should never believe.
Let ENG's experienced Mortgage Bankers help you find a solution for your financial needs. Call or Email me to get a FREE copy of the top 25 question you must asked your loan officer before you do business with them. Benefit from my 21 years of experience answering the most common mortgage questions.

Lowell Sterling
Mortgage Banker
NMLS# 968898
LSterling@englending.com
16800 N. Dallas Pkwy, Suite 290 | Dallas, TX 75248
Office: 972-646-2411 | Cell: 214-418-7022 | Fax: 214-614-4637
Bank of England /dba ENG Lending: NMLS# 418481
0 votes Thank Flag Link Mon Mar 25, 2013
Good afternoon djdave718,

We certainly encourage you to shop around to find not only the most favorable terms for your mortgage loan, but also the best mortgage professional to work with.

The concept that “too many mortgage inquiries lower your credit score” is a MYTH. If you had other mortgage inquiries in the past 30 days, the system treats a new mortgage inquiry with no effect. The original mortgage inquiry may have an effect, but your score won't drop much. (*see quote from myFICO.com below)

I have seen this personally with the thousands of credit reports I have reviewed over my 23 year career as a mortgage professional. I believe in TRUTH, not MYTH. I have included for your information a link to the Fair Isaac Corporation’s website so that you can verify the truth for yourself about this oft-quoted myth.

Fair Isaac is the company that created maintains the credit scoring systems. Their website clearly indicates how mortgage inquiries affect a credit score.

From myFICO.com: “Does the formula treat all credit inquiries the same?

No. Research has indicated that the FICO score is more predictive when it treats loans that commonly involve rate-shopping, such as mortgage, auto and student loans, in a different way. For these types of loans, the FICO score ignores inquiries made in the 30 days prior to scoring.

Will my FICO score drop if I apply for new credit?

If it does, it probably won't drop much. If you apply for several credit cards within a short period of time, multiple inquiries will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score“

Here is the link: http://www.myfico.com/CreditEducation/CreditInquiries.aspx

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Tue May 14, 2013
The reporting bureaus will see that they are all related to buying a home and shouldn't affect your score as much. If you go through a broker they will shop for the best rate and you'll only have to pull it once.

Chris
0 votes Thank Flag Link Mon Mar 25, 2013
It is true, and if your credit score is that shaky, maybe it's not ready to carry a thirty-year mortgage commitment just yet.
0 votes Thank Flag Link Mon Mar 25, 2013
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