Home Buying in Hayward>Question Details

Maria Villaf…, Home Buyer in Hayward, CA

Can a person be pre-approved for a a FHA loan with severals lenders companies and make offer to purchase a?

Asked by Maria Villafan, Hayward, CA Fri Mar 6, 2009

house and when an offer it being accepted the buyer decide what company wants to use for?????

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Maria

If you are buying a house via an FHA loan, the first lender you ask will file a loan application fo that specific house, and the FHA file will be opened.

FHA FILE

But if you decide to switch lenders and still want to buy via an FHA loan, that lender will have to release the file to the next lender.

Switching lenders will delay the process and you may end up either requesting an extension, or the seller and his agent may give you a Notice to Perform if you don't release your loan approval/appraisal contingency in time.

ESTABLISH GOOD RELATIONSHIP WITH YOUR LENDER

Is there a reason why you would want different lenders preapproving you? Since one of the first and most important steps is to get preapproved, it's good that you're speaking with more than one lender. However, at one point in time, you shoUld choose which lender to use and who will submit a preapproval letter in your behalf. Since buying a house will be one of the most significant purchases you will make, establishing a good relationship with your lender is critically important.

EFFECT ON YOUR CREDIT SCORE

Also, I may be wrong, but I don't believe your credit is going to be as adversely affected when applying to buy a house as long as the applications are done within a 14-day period. Checking with various lenders on a home purchase is not the same thing as applying for credit cards.

Make all home financing applications within a 14-day period to avoid a negative impact on the credit score from multiple credit inquiries. The law allows a 14-day window without penalty for credit inquiries for a single purpose (house loan or car loan, etc.).

Each inquiry into your credit history can impact your score anywhere from 2-50 points. When it comes to mortgage and auto loans, however, even though you're only looking for one loan, multiple lenders may request your credit report. To compensate for this, the score counts multiple auto or mortgage inquiries in any 14-day period as just one inquiry, so try and stay within that time frame.
1 vote Thank Flag Link Fri Mar 6, 2009
Maria,

I guess, you can get pre-approved by different lenders for fha loan but I dont see the benefit of getting approved for the same fha loan with different loans. You dont want to run your credit with all the lenders, which will affect your credit score. What you have to check is there fees, points and what is the best loan for you and what would be their closing cost for getting loan and once you know all these then compare which one is good and then go with that lender for the loan when you purchase a house.

If you are not with a real estate agent then I can help you to buy a house. You can reach me directly at 510-366-9405.
2 votes Thank Flag Link Fri Mar 6, 2009
Hi Maria, just a clarification on pulling credit:

There are two stages to the treatment of an inquiry associated with mortgage and auto loans. First, there's a 30-day buffer period. For the first 30 days that an inquiry is on your credit report it will be ignored by the FICO score. Then, once it passes that 30-day window, inquiries are grouped so that all inquiries within a rolling 14-day period are considered as just one inquiry by the FICO score.

Best, Steve
1 vote Thank Flag Link Mon Mar 9, 2009
Not a good move for a variety of reasons. First, FHA "real" approvals require a credit bureau for each lender. Second, FHA rates do not vary much, from lender to lender and third, FHA loans require more paperwork per approval than a standard conventional loan. Lastly, while many claim to be able to get an FHA loan through - few are able to do it which is part of the reason sellers are a little hesitant to take on buyers buying via FHA. I was handed two this week from a very major lender (bank) that said they could do it then walked away mid stream. This put not only the purchase in jeapordy, but also the buyers deposit. Best case, interview each lender, test their knowledege of FHA, look at their fees and when all that is done, pick the one you are most comfortable with and that you believe you can trust and don't look back. Best of luck.
1 vote Thank Flag Link Fri Mar 6, 2009
Generally FHA guidelines are similar amongst lenders. It may not be to your benefit to have your credit run between multiple lenders. FHA guidelines by lenders have raised FICO requirements across the board.

I do have one great option for you as well if you are a first time home buyer as well. I just successfully completed a FHA loan combined with Hayward's Down Payment Assistance program. If you would like details please give me a call. I would love to discuss it further with you.

I also have a great article on my BLOG if you are interested.

http://greenmortgagegroup.com/2009/01/hayward-ca-down-paymen…


Brian,
925-708-5400
1 vote Thank Flag Link Fri Mar 6, 2009
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