Home Buying in Solano County>Question Details

Sadrenter, Home Buyer in Solano County, CA

Too many credit inquiries lowered my score-I've been looking @ homes since 3/09 All the inquiries are from my lender????

Asked by Sadrenter, Solano County, CA Sat Dec 12, 2009

My credit report/FICO score was lowered stating: "too many inquires"- So, I pulled my own reports. ALL the inquires are from my broker/lender- I thought mortgage loan inquires did NOT affect your score? I was pre-qual'ed back in March & about every 6 to 8 weeks they ran a new inquiry...totaling 6 in all from my same broker. I was asked to provide proof of employment with copies of pay stubs and bank statements about every 6 weeks through this stressful 10 month experience as well...(I know its only to confirm that I still had a job) Well, now its Dec. 2009 & I still do not have a home- I had made 50 offers- All the cash investors had a feeding frenzy in our depressed county- One of the hardest hint in CA- Anyways- My score was 785, now about 50 points lower ;-( If, I continue to look for a house, with each inquiry my score is lowered...WHY! What can a girl do???? Please help Thank You

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FHA home loans are not credit score driven as long as your credit score is above a 640 you will get the best rate available with only having to put 3.5% donwpayment.
0 votes Thank Flag Link Sun Dec 13, 2009
Your credit score only gets one hit in 45 days when you pull credit through various lenders. FICO reconizes your right to shop for a mortgage.

Your credit report is good for 90 day. There's no reason to keep pulling it unless your score is low and there is reason to believe that it went up (i.e. you had some credit repair done).
0 votes Thank Flag Link Sun Dec 13, 2009
They should not be running your credit that much. It seems rather excessive and generally over 3 inquires starts to dent the clients score. It seems as though they are being overly cautious. Keeping a current file with paystubs and bank statements is a great idea if you are writing that many offers but credit every 6-8 weeks is overkill. Did they think you were in contract a few times?
0 votes Thank Flag Link Sun Dec 13, 2009
There are only 2 times a lender will run a credit check:

1. To provide a borrower with a pre-approval letter.
2. Right before issuing loan documents (final loan approval process) to ensure the borrower's credit profile has NOTchange since the first time it ran the credit report.

Any additional credit check in between is unnecessary.

You should ensure that your current lender does NOT charge you a fee for every time it re-run your credit. I suggest you obtain a copy of your latest credit report from your current lender and use it to find a more experienced lender.

Your latest credit report is good for up 6 months. Wipe out your SSN then give a copy to your agent so he/she can use it for your future offers. Also, you could use the same copy for other credit inquiry purposes i.e., ask if the creditor would use your current copy instead of running another inquiry...many creditors will accept your copy...although be prepared for a few "no".

I am helping one of my clients to submit multiple offers and the lender is NOT running a credit check for each pre-approval letter that we request to submit along with our offers.

I hope the information helps.
0 votes Thank Flag Link Sat Dec 12, 2009
Greetings,
Why don't you ask your lender to STOP pulling your credit???

I understand verfication, but what you've described sounds a little overboard. What good are the inquiries if you do not have a property under contract? They are not clearing closing stips!

Tell them to STOP...when you get a property under contract, they can check, re-check and triple-check as much as they need to in order for you to get the funds needed to buy your new home.

Is this a direct lender, or a broker shopping your profile? No reason you couldn't have walked into any bank and out with a pre-approval subject to you finding a house to finalize the deal.

Good Luck, (Have you asked your lender why?)
0 votes Thank Flag Link Sat Dec 12, 2009
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