jme1282, Home Buyer in Boynton Beach, FL

does shopping around for a mortgage lender hurt one's credit score?

Asked by jme1282, Boynton Beach, FL Tue Jun 5, 2012

We've been pre-approved for an FHA loan with one lender, but wanted to shop around with other lenders that could offer assistance programs and other loans. Will this hurt our already low credit score? If so, by how much?

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Answers

7
If you shop within a 30 day period, it will not hurt your score.
1 vote Thank Flag Link Tue Jun 5, 2012
They say it does not if done within a cetain time frame, but if you have low scores an an U/W sees a bunch of inquires, then it could hurt.

Why are you looking to do FHA? I write FHA loans too, but only if the borrower has no other option. FHA loan are NOT Cheap when you factor in that FHA MIP Fee of 1.75% points stacked on the loan and then the 1.25% Monthy MI premium that is not tax deductible for many borrowers!

See loan programs #2, #4 and #5 below

1) 100% LTV- VA /Debt Payoff on Purchases too
2) 100% LTV- USDA/12 mo. into Chapter 13 BK…OK!
3) 99% LTV- FHA ($100.00 down)

4) 97% LTV- No PMI and No FHA MIP FEE of 1.75%
5) 95% LTV- No PMI
6) 95% LTV- CONDO
7) 90% LTV- No PMI 2nd Home
8) 90% LTV- JUMBO
9) 85% LTV- No PMI to Super Jumbo

STATED INCOME ALT loan programs up to Super Jumbo
10) 80% LTV- FIX n’ FLIP Invest. Prop.
11) 75% LTV- NEW- Stated Income Alt
12) 75% LTV- NEW- Foreign Nationals- Stated Income Alt
13) 75% CLTV-NEW- after Short Sale, BK or Foreclosure
14) 70% LTV- Soft and Hard Money -Stated Income Alt

Closing Cost Assistance Avialable too.

$150,000 up to $1,500

$250,000 up to $3,500

$500,000 up to $10,000

This is for any borrower purchasing a listed property over $133,000 in Florida and does NOT have to be paid back

-
Steve McRory
Pro Option Mortgage/ Florida
steve@pro-option.com
http://WWW.PRO-OPTION.COM
Ph: 888 662 4404
0 votes Thank Flag Link Mon Aug 6, 2012
I've been told in the past that one should limit their "mortgage shopping around" by having your credit scores pulled by no more than three different lenders within a 30 day period. I cannot guarantee this as an absolute fact though it does seem reasonable.

I very much agree with Annette's response below in which she says to consult your real estate professional for reputable lenders with a "proven track record."

JOAN LORBERBAUM MOORE
Broker Associate, GRI
Lang Realty
9858 Clint Moore Road
Boca Raton, FL 33496
0 votes Thank Flag Link Tue Jun 5, 2012
and don't go pulling credit all over regardless of the 30 day thing, because unless you are closing within 30 days of your first pull you'll have to pull again and you can't go under 600 for FHA with some lenders.
0 votes Thank Flag Link Tue Jun 5, 2012
I do FHA loans, but if possible, avoid FHA loans as they are actually VERY expensive!

By the time you add in the financed 1.75% FHA MIP Fee and that monthly MI premium in extra payment, it's not all it's cracked up to be!

There are are other options that make more sense for qualified borrowers.

You can see a list of these programs at: http://www.pro-option.com

PLUS, I can help you obtain RB to pay for closing costs!

We DO NOT need to pull credit up front, just tell me some info and I can't advise


Steve McRory
Pro Option Mortgage / Florida
888 662 4404

Steve@pro-option.com

http://www.pro-option.com
0 votes Thank Flag Link Tue Jun 5, 2012
As Karin mentioned, the time period is critical.
To limit the number of inquiries needed ask you real estate professional for referrals to lenders who are not only competitive in costs, but have a proven track record of closing on time without inducing drama into the process.

Best of success to you.
Annette
0 votes Thank Flag Link Tue Jun 5, 2012
Hi, after 17 years of lending, I can tell you that it definitely does hurt your credit score. No one can tell you exactly how many points you'll lose for the additional inquiry because this is a closely guarded trade secret of the credit bureaus. All I can tell you is that it'll likely be a few points. It's ok to shop maybe two lenders, but in my opinion any more than that and you'll risk not getting the loan approved. Remember, FHA loans require a minimum FICO score now of 640. So if you're already close to that, you'd better be careful.

If you'd like to give me a call, I'd be happy to help you. We are located right here in Boynton Beach on Federal Highway, just a block north of Woolbright. Our rates are the lowest possible, plus we can help you get some cash towards your closing costs to help save you some money. Call me for details and I'll be happy to meet with you either in person or right over the phone!
My number is: (561)364-LOAN (5626) and my email address is: steve@streamlinefg.com.

Looking forward to hearing from you!

Steve Shalaby
President
Streamline Financial Group, Inc.
0 votes Thank Flag Link Tue Jun 5, 2012
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