Home Buying in 94015>Question Details

Sjs, Home Buyer in SF / Pacifica

Does getting a Pre-Approval hurt much to a median score of 780?

Asked by Sjs, SF / Pacifica Tue Nov 11, 2008

Hello Experts,

I'm starting up the process to get PreApproved from a lender to do REO shopping, and had 2 quick questions.

1: If I have 780 as my median credit score, will getting pre-approval from a few lenders devalue the score much, and if so by how much?

2: Is there a golden standard of lender that I should get pre-approval from. Someone like BofA or WellsFargo, as compared to a smaller lender?

Thanks,

msj

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Answers

6
Sjs -

One thing I recommend when clients want to show around for loans is to pull your own score from the three top credit bureaus and copy them for the lenders. That way they don't pull until you have decided who you want to go with.

Any of the online services can pull from the big 3 credit reporting companies. You can pull once a year for yourself with no credit hit.

CJ
Web Reference: http://www.TalkToCJ.com
1 vote Thank Flag Link Tue Nov 11, 2008
Your score shouldn't go down more than 10 points for running your credit. Before doing so, make sure to interview the banks you are considering. Do not let anyone run your credit until you decide who to work with, ortherwise you will have more than one inquiry.

Going to B of A or Wells Fargo is very smart for two reasons. One, you will know that these lenders will still be in business thru out your buying process. Two, the seller and their agents will know you have the ability to close escrow as well, and could be a reason they choose your offer over another.

If you need referrals for to either bank, please feel free to ask.

Regards,

Dave Tap Tapper
Realtor
Cashin Company
650-403-6252
415-370-7195
Web Reference: http://Teamtapper.com
0 votes Thank Flag Link Fri Nov 14, 2008
Hello MJS-

My name is Luke Allison and I am a retail LO with Flagstar Bank. I will tell you that you should be able to shop around your mortgage and not see your credit score take too many hits while you prequalify. However, once you get your mortgage, you will see your score drop as you acquire the new debt.

As for the gold standard of lenders, let me say that a mortgage is a mortgage and you should be able to get the relative same product from bank to bank.

However, if rate is what you are talking about, you probably would do best to go with your local credit union. I have seen rate quotes from credit unions that I have been hard pressed to compete with. If you want to deal with a national bank and you are looking for the best rate, I would suggest finding a rep for Taylor Bean and Whitaker. I am not sure if they have a retail channel or if they only work with brokerages.

As much as I would like to say that you should call me, if I am being honest I would tell you that the going market rates from TBW, Bank of America and Wells Fargo always seem to ever-so-slightly better market rate going. However, remember that the rate you get offered will always be determined by the day, how much origination your LO offers you and how much profit/rebate the LO wants to earn from your loan.

If you have any questions, please call me.
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com
0 votes Thank Flag Link Tue Nov 11, 2008
Sjs,

First let me say good for you having 780 credit score-that is awesome and should get you some good rates. Searching lenders should not impact your score much at all. I would get one solid pre-approval letter with a well known lender to offer with-have them pull your credit, assets etc. Then you can search rates and programs-without other lenders pulling your credit again. Just let them know what your score is and that you are comparing rates. Good luck!
0 votes Thank Flag Link Tue Nov 11, 2008
If you plan on shopping REOs, getting a pre-approval is a must. Most of the banks will not even consider your offer without one. Make sure you get an approval from a direct lender that states your application has been submitted and that your financials have been reviewed......a generic one from a mortgage broker will not usually do.

In some cases, you also need to be prepared to get approved by the bank's preferred lender.....it is not requested in all cases, but I am seeing it more and more in Orange and San Diego counties.

Make sure you are working with a full-time, real estate professional who has experience with bank-owned properties....you can get a great deal, but the process is often full of challenges that need to be navigated by an experienced professional.

Good luck!!
0 votes Thank Flag Link Tue Nov 11, 2008
Sjs, I would get preapproved with one lender and find out how much you qualify for. Using those results you could then go house shopping. When you find the right home if you think the lender you first dealt with wasn't being truthful or had terrible rates you could shop around some. Hopefully you can find a great lender to start with. Feel free to contact me for some specific names of people who would do a great job for you. How do you already know your credit score?? Just so you know there are a lot of free sources and ones you can buy off the internet that aren't 100% accurate and may be higher than it actually is. Those credit scores mean nothing to a lender who will pull a real credit report. That credit # may be very different from what you see now. BTW Getting pre aproved once is not going to hurt your credit.

Glen Mitchell
415-722-6085
Web Reference: http://www.maui4rent.com
0 votes Thank Flag Link Tue Nov 11, 2008
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