Two things- first, no legitimate lender will give you a pre-approval without knowing what your credit scores look like. I'm not implying that you are assuming anything else, just want to make sure you know. Second, take a look at the link below from the FICO website, it should clear up some of your concerns. You will not see a decrease of more than a few points for shopping a mortgage. Scare tactics of major credit score drops from rate shopping are garbage.
I also have a slight issue with what Mike said below. Lenders do not "feed lines" about guideline changes. The truth is that they do change, and I would not put my name or my bank's name on a pre-approval or any other paperwork that was completely useless because it was based on a hunch. Pre-approvals require documentation.
E Mortgage Management
800.793.9633 ext. 156
I invite you to read my blog about shopping for a loan and rates linked to in the references below. The short answer is with the credit scores you have you are in great shape. Credit bureaus realize that people shop for loans. When you first have your credit pulled your score may drop a few points (at most!). If you have credit pulled again, shopping for the same product, within certain time frames (30-45 days) then your score will not decrease again. Even if you are outside this time frame then again it will drop minimally.
Your credit is great and you will have no problems. It sounds like your broker doesn't care too much because everyone deserves a smooth experience. I would be happy to work with you both. Please let me know if I can assist you.
I am available from 8am to 9pm during the week and weekends via phone and e-mail.
Good luck and I hope to be able to help you.
David. P Cruickshank
Ardain Mortgage Corp
As far as the lender pre-approval and the short sale talk to your lawyer and see if they advise sending in any new paperwork. In my experience it's not a good idea to rock the short sale boat after everything is submitted. Multi tasking and change are two things these banks dealing with distressed properties don't deal well with. Once you get the place under contract is when you would advise of any change. For now just concentrate on getting the place and picking out your next lender. Once you get it let them know the new contact information for your lender. People switch lenders all the time at all different times in the buying process.
You should be good to go. Best of luck!
Thanks for the follow up, but I have two more questions.
Will other potential brokers/banks provide ballpark estimates or loan terms and rate info without checking credit (assuming we don't allow anyone else to run credit until we've settled on them as our lender/broker of choice)?
Also, we have a contract out on one home (Short sale, waiting to hear from bank) and the broker's pre-approval letter and contact information are what's provided in that contract. Would there be any issues if we decide to change? I'm guessing we would have to have our lawyer submit a change?
He's been closing my deals for years and have not had one delay. He calls on a regular basis and gets the job done. Between real estate agents and lenders there is a lot of competition and you should settle for nothing less than excellent service in all aspects of buying a house.
Best of luck!! Let me know how things turn out!