Home Buying in 75204>Question Details

Angela Padil…, Home Owner in Dallas, TX

Is it a bad idea to try to get pre-approved and then decide not to buy? I want to buy a townhome, but may have to move out of state for work. I

Asked by Angela Padilla, Dallas, TX Fri Oct 16, 2009

really want to know how much I could get approved for though. Any advice?

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Since some lenders will have offices in different states you can ask each bank ( or other institution) if they have offices in the area you want to go to. IF they do then you can ask to be pre-qualified.

I would ask the lender IF you get approved completely ( forget which prequal or pre-approve) how long you have to buy something on that loan. The longer they will give you the better. Say you got a 4 month time frame. Think, will I be willing to buy during this time? Will I be secure in my new job? ( Think last hired first fired) (Think of how many people now have relocated for new jobs only to be laid off in a few months, weeks, or even arrive and find the job just went away.

If you do move will it need to happen again in the next 6 years? If you are going to be somewhere less than that length of time you will likely lose money buying instead of renting.

Do you have any ideas what the people, places, lifestyles, and so on are in the new location? Would you feel more comfortable being able to look over an area a lot before deciding to choose this neighborhood? All things to consider.

You can have a credit score pulled by yourself or ONE, but only one bank. Then take your fico score to different lenders. That way you do not have tons of checks that lower your score. You will be told that based on taht score and income you can get x amount at x% interest. Only if you actually apply for the loan will they have to pull your fico score again.

The basic idea of credit is this: your yearly income x 3 = the loan you can safely get.

The other thing I saw posted elsewhere is they want to see you have steady work for a stated time frame. If the job is with the same company you would be ok. If a new company you may have problems.
0 votes Thank Flag Link Sun Oct 18, 2009
If you are approved for a loan you have 60 days locate and close on a home prior having approved again. WHICH lowers your credit scores.

If you are not confirmed regarding professional obligations best hold off search with any sales offer you must have lender statement submitted.

When I interview potential buyers who don't know I recommend following general rule HOWEVER many other factors involved qualify a buyer

$50K annual income
$150K up to for purchase.

Qualified for a loan you need 2 years employment, at least 3.5% down payment, debt ratio, credit scores above 620.

There are WONDERFUL townhomes in area, and foreclosures

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0 votes Thank Flag Link Sun Oct 18, 2009
Angela,

The same loan officer may be able to help you in both places. No harm to get started now. It's good to know where you stand and know what goals if any you need to set for saving down payment, closing costs, improving your credit score, etc.
0 votes Thank Flag Link Fri Oct 16, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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I think it is a good idea. I think it is always good to get started early. That way you have goals to use if you need it. Maybe a slightly higher credit score gets you a better interest rate, maybe a slightly higher down payment saves you PMI. If you move and decide not to buy, no harm done. Just to the loan officer who spent time with you and will now not get the loan. In that case perhaps buy them a gift card to starbucks or dinner somewhere as a nice gesture.
0 votes Thank Flag Link Fri Oct 16, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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I would apply with a loan officer in the town you are moving to.......
State taxes and other fees vary by state.

Don't worry about credit inquiries... most people only suffer a 3 - 5 point ding for the inquiry.
Now, if your scores are kind of on the bubble.... that advice may change.

Please feel free to contact me for follow up questions!!

Tom Burris
DallasLoanGuy.com
0 votes Thank Flag Link Fri Oct 16, 2009
Before you apply for any preapproval, I suggest checking your credit score/report first. In some states you can request a free copy of your credit score once a year, so try doing that and make sure it is accurate before you go applying for a mortgage. If there are any discrepancies, have them ammended so that you can get the best possible deal on a mortgage. Then when all your ducks are in a row call a mortgage specialist who is located in the area you would be moving to when you are sure you're getting transferred.
0 votes Thank Flag Link Fri Oct 16, 2009
You can get pre-qualified without a lender pulling your credit as long as you know your scores. And if they do pull your credit, you are not going to take a hit for it, so honestly it's kind of "no harm-no foul". And then if you do decide to purchase, you are that much ahead of the game. Noticed that you are in LA - if you buy will it be in DFW? Happy to help you out here, any time - please consider me at your service. Best regards, Kim
0 votes Thank Flag Link Fri Oct 16, 2009
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