Financing in Charleston>Question Details

Karla, Home Buyer in 55352

We are planning to buy a second property, should we get prequalified for a loan? I read on one of

Asked by Karla, 55352 Mon Mar 16, 2009

websites that it's better to print out our credit report from each credit bureau and take it to prospective lenders so they don't have to pull our credit. Also, we are buying property outside of the state we currently live in, I read that it's better to deal with lenders in the area we are planning to buy due to the state lending/insurance specifics. Any advice would be appreciated,

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Printing your credit report from a or consumer websites is NOT the same as the credit report a mortgage banker pulls. The Fair Isaac Company has over 80 different "credit profiles" on every consumer. What your car dealer equifax score is, is totally different than your refinance equifax score.

That being said, getting a pre-approval is the most important step in buying a property. For one, it shows the realtor that you are serious. Second, there will not be any surprises down the road i.e you fell in love with a house, but you dont qualify for it, and 3rd, with today's competitive marketplace, realtor's and sellers will not show you a house (if they value their time) without one.

As for going with a local lender, we all get our money from the same place i.e. Wall Street. Case in point, walking into your local branch is always going to cost you .375-.5% more, than going with a direct lender, who you may not have heard of before.

Good luck with your search.
0 votes Thank Flag Link Tue Nov 13, 2012
Buying a house is not like shopping for a car. Dealers may pull your credit report several times in a two day period which will reflect negatively on your score.
Pick a lender and go with the best program that fits your needs. Local is good since the Realtor can keep tabs more readily on a local connection. I would not print out a report to take around with me. I would get a reputable lender to issue a pre- approval letter based on what I qualified to borrow.
J. Foster Smith
Carolina One Real Estate
900 N. Main Street
Summerville, SC 29483
Bus 843-974-6029
Toll Free 1-800-942-1828 x 6029
Fax 843-202-8762
0 votes Thank Flag Link Tue Mar 17, 2009
Hi Karla

The answer is YES, you should definitely speak with a lender to get pre-qualified. I always recommend working with someone local and reputable. If you use someone unfamiliar with the area then you are asking for trouble and increasing the possibility of snafu's in the process. As far as the credit goes, I would just have the lender pull it for you. It's normally free, and they will have to pull their own copy anyway to underwrite the file and provide an actual approval. Feel free to check with 2 or 3 lenders to compare offerings. As long as they all pull your credit within 15 days of one another the credit bureaus will only consider it as1 inquiry and your scores will not be affected

Good luck!
0 votes Thank Flag Link Tue Mar 17, 2009
Hi, I always tell my folks to get one lender to pull there credit or do it themselves. Then give your middle score to whoever you talk to about a loan. They can get you pre-app. w/ that info.

There are advantages to local banks. I like South Coast Bank in Mt. Pleasant.

If you want a good resource for second home or retirement property visit my site devoted to the subject

If you have questions, let me know. I am here to help - Bob Brennaman Jr. (843) 345-6074.
0 votes Thank Flag Link Tue Mar 17, 2009

I would agree that a local lender will be best suited to help you ~ locally Chase and Wells Fargo have some fabulous programs available with very low closing costs. Try Mike Gobin at Wells ~

I think pulling your credit report from each bureau is a great idea ~ however they may still need your score to properly qualify - I use to get my credit score ~

Marshall Walker
0 votes Thank Flag Link Tue Mar 17, 2009
Hi Karla,

Yes, as a general rule, it is usually better to deal with lenders in the area where you are buying. It would be my pleasure to put you in touch with some local lenders.

Regarding pulling your own credit report and taking it to lenders, I know many lenders have a policy to run their own reports on customers, so it would be best to check with the individual lenders first to confirm their policy on the matter.

Please feel free to contact me directly if you would like to discuss these or any relocation matters. Thank you.

Bob Nitkewicz
0 votes Thank Flag Link Mon Mar 16, 2009
Karla, sounds like you're getting pretty serious about this move South! Yes, you absolutely should get prequalified. Most sellers require a prequalification letter with any offer. Prequalification will also let you know how much mortgage you can afford; then you can decide how much you really want to spend on a second home. The rest of your question has two parts, so let me give you some brief answers to them both.

1) "it's better to print your credit report and take it to lenders" -- A reputable lender is not going to give you a prequalification letter based upon a printout that you bring them. What the website is trying to warn you about is going to many different lenders and having your credit report pulled. This will reflect negatively in your credit score.

2) "it's better to deal with lenders in the area we are planning to buy, due to state lending/insurance specifics" -- There are many lenders who service loans nationwide, and many lenders can do loans in any state. If you currently have a good relationship with a lender you trust, check with them first to see if they do loans in the area you are interested in. Once you decide upon an area, also check with your Realtor about reputable local mortgage lenders, and talk with a couple of them as well. If possible, get a Good Faith Estimate of costs and monthly payments, and use that as a comparison for different lenders. Narrow your selection to a couple of lenders, then talk with them and make your decision.

I can refer you to a very knowledgable mortgage broker in the Charleston area, if that's where you decide to locate. I'll be glad to answer any other questions you have about buying a second home and relocating, as well, Karla.

Best of success to you and your family as you move forward with this decision.

Teresa Cooper, CPA, Realtor
0 votes Thank Flag Link Mon Mar 16, 2009
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