Financing in 60565>Question Details

Tectonic44, Home Buyer in 60565

How Will It Affect My Credit Score If I Change Mortgage Brokers?

Asked by Tectonic44, 60565 Sat Jun 27, 2009

Basically, we went with a recommendation from a friend on our Realtor and he recommended the same mortgage broker our friend used. We, however, are not as thrilled with the broker. He doesn't return calls in a timely manner or send documents when he promises. Also, the application documents he sent are full of errors. My name isn't spelled right, addresses are different, income isn't right, etc. We're first time buyers and may just be high maintenance, but we have certain expectations when dealing with a home mortgage.

So, we want to move on to someone else. We both have 770 credit scores and are looking for a loan of $220,000 plus $15,00 down (Total of $235,000). Will it affect our credit if someone else checks our credit scores for a new pre-approval? Any recommendations on what we should do?

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Tectonic,

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.

http://www.myfico.com/CreditEducation/FactsFallacies.aspx

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.

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com
0 votes Thank Flag Link Wed Jul 1, 2009
Tectonic 44,

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.

Sincerely,

David. P Cruickshank
Ardain Mortgage Corp
847-354-5455
davidc@ardain.com
http://www.ardainmortgage.com
0 votes Thank Flag Link Sun Jun 28, 2009
They should be able to provide estimates without checking credit. Just tell them that someone already checked your scores and tell them what they are. If they feed you some line about how lending guidelines are changing so fast and they just can't do it it's time to call the next guy.

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!
0 votes Thank Flag Link Sat Jun 27, 2009
Mike-

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?

Tectonic44
0 votes Thank Flag Link Sat Jun 27, 2009
good afternoon....change mortgage companies now....get everything back form the current one if you gave them personal documents........it will not effect your score...best regards...bob mcclure- success mortgage partners- plymouth, michigan.....
0 votes Thank Flag Link Sat Jun 27, 2009
Hi. In my opinion it will not affect your scores enough to make a difference. Just don't let more than 1 more lender check your credit. You can speak to a few and test them out....see how quickly they return calls and how they interact with you. f you don't switch you may not get the loan or the closing may be delayed the way this broker is working. You are not high maintenance either. First time buyers have not gone through this process before. And I'm here to tell you that the two or three mistakes you mentioned are big enough to make a switch. There are plenty of good lenders out there that will take good care of you.....some even return calls on weekend. It's true.

Try this:

Tom Long
Wells Fargo
630-753-9319
630-347-1519-cell

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!
0 votes Thank Flag Link Sat Jun 27, 2009
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