Financing in Chicago>Question Details

Theresa Scar…, Home Buyer in Chicago, IL

Denied pre approval from Chase with a 753 credit score?

Asked by Theresa Scarbrough, Chicago, IL Sun Mar 11, 2012

I applied online, which felt like a mistake because it was asking for an address, listing price, etc. & I have not even started looking yet. I just wanted to get an idea of what amount I will qualify for. A gentleman emailed me a day after I filled out the application & asked more about the "home" I was looking to buy & I explained the above. I also explained I am a freelancer & am currently paying off the last of my credit card debt which should be all paid off in the next couple of months & that I will be getting more money for the down payment this May. I then asked that he cancel the application if this was not the proper source to just get a dollar amount of what I could borrow & if I should just wait till May. He never responded to my email reply & just sent the rejection letter stating I had to high of a balance on my CC's, I asked to borrow to much money, & my credit history isn't long enough? I just paid off a 5yr car loan & never max out my CC. Will this hurt future apps?

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6
It will only hurt your chances if you follow that same path.
I have fund that on web sites like that, the people are not licensed professional; they are warm-bodies, probably in a foreign country, who have a script that they are not allowed to vary from.

I would recommend that you do not pay off the CC's completely; that would end their positive input to your credit score; you want to have a small balance and pay more than the minimum each month.

There are a lot of good Mortgage people on Trulia; you will undoubtedly be answered by a few.

Good luck and may God bless
0 votes Thank Flag Link Tue Mar 13, 2012
This is the problem with many lenders. You get a "No" but they don't tell you how to turn that "No" into a "Yes". That loan officer sounds like he is not competent enough to advise you.

You need to sit down with a local licensed mortgage professional that can review your credit, income and assets to determine what you do qualify for and what you don't qualify for. The Pre-Approval process is one of the most crucial steps in the home-buying process and you need to be familiar with what to expect and what to ask. Take a minute to read about it here: http://www.trulia.com/blog/elliott_r_oliva/2011/12/pre-apppr…

What I recommend you do is find a good real estate agent and then have that agent refer you to 3 local lenders. Preferably a mid size mortgage bank or broker and maybe a credit union.
0 votes Thank Flag Link Tue Mar 13, 2012
Theresa: Your story above is solid proof as to why talking to an actual live mortgage professional is best when pursuing answers to your financing questions. From the sounds of it, you have some things in the mix as far as employment and credit/debt are concerned that would make filling-out online forms and receiving solid answers and guidelines near impossible to do. Lending rarely fits into those neat little forms anymore.
My suggestion would be to start over. Talk to a lender live/one-on-one. A mortgage lender that will take the time to find out about your particular personal financial scenario and then work with you to place you in the most beneficial financial status for home buying. Certainly with elimination of a car loan and credit card debt, there is much positive to work with towards that goal.
I would love the opportunity to speak to you. I will not run your credit again, until I have a more clear idea of your current finances and employment and it makes sense to take that action. Together we'll decide when that should be done. Please feel free to ask me questions here ... or contact me directly.
Best of luck to you no matter your decision ...
Web Reference: http://www.genemundt.com
0 votes Thank Flag Link Tue Mar 13, 2012
Theresa,

Credit Bureaus usually take into account homebuyers usually to talk to several lenders when shopping for a loan. Interview local lenders to help you find a lending program that will work best for you. Ask your friends and family for references of local lenders that they have had a good experience working with. Check with you real estate agent to see what lenders sellers prefer in your market. Take the time to find a good lender that will help get you prepared to become a homeowner.

Thanks,
Carol Perdew
Prudential California Realty
(209) 239-7979
Carol@PerdewHomes.com
http://www.CentralValleyHomes.com
DRE 985176
0 votes Thank Flag Link Mon Mar 12, 2012
Good Morning Theresa,

If they pulled credit it will show as a inquiry, but should not negatively effect any future attempt to get a mortgage. Your best to contact a lender and talk to them about what you are looking to do. Provide them with 30 days paystubs, 2 year tax returns/W2's, 3 months bank statements, and most recent statements for any retirement accounts you may have. With this information you should be able to get a preapproval.

If you would like to talk to me personally about your situation and what you are looking to do, please call me anytime at 815-289-0880.

Good Luck.

Nick Nelson
NMLS #384413
1st Step Mortgage Group
6876 Spring Creek Road, Suite 124
Rockford, IL. 61114
815-289-0880
nickn@1stepmortgage.com
0 votes Thank Flag Link Mon Mar 12, 2012
If it'll hurt, it won't be by much. Don't worry about it. But there's a lesson in your experience. Deal with someone local or with whom you already have a relationship.

Hope that helps.
0 votes Thank Flag Link Mon Mar 12, 2012
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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