A few questions from a first time buyer. How soon to get pre-approved?

Asked by Pepperderr, Milton, PA Fri Jan 13, 2012

I would rather not make any offers on the house we are interested in until March. March 1st a bankruptcy comes off our credit report and we will also have all our credit cards paid off and hopefully a downpayment (we want to go with a VA loan so a downpayment is not necessarily needed). The house has been on the market 71 days now. Is there an average time hourse are usually on the market? So far there are really no other houses we are interested in incase this one sells before we are ready.

If we get pre-approval, will that mean they will be checking the credit reports? I know if too many inquiries are made it can lower your score. What happens if we get pre-approved now and then decide not to buy for 5 months? Should we just wait till March to even get pre-approved? Does that mean we find a bank that does VA loans and if they pre-approve us we will most likey get the loan?

Where is a good place to get info since we are first time buyer?

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Sharon Sapp, Agent, Reading, PA
Thu Jan 19, 2012
Ask your Realtor. Typically, the lender will allow up to 6% of the closing costs but some sellers need to put a cap on what they can contribute for a variety of reasons. Perhaps this is the case here. You also need to have at least 3% of tour own money in the deal.
Web Reference:  http://www.YourReatir4PA.com
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Pepperderr, Home Buyer, Milton, PA
Thu Jan 19, 2012
Well, they pre-approved the loan to buy the house we want. All our credit scores were 710 to 740. Now it is a matter of if the seller will pay the closing costs. I am not holding my breath for that one. We don't have 6000 or 8000 dollars up front because we were not actually planning on buying a house and things moving so quickly as they did. One question I have though is the loan officer said make the seller pay 6000 something for all the closing costs but then the agent is asking for 6% as the closing cost and that is 800 something. Where did the difference come from?
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Lisa Wetzel…, Agent, Gardnerville, NV
Fri Jan 13, 2012
I agree ... get pre-approved so that you know what you are dealing with and can plan accordingly.

Lisa Wetzel
RE/MAX Realty Affiliates
1320 Hwy 395
Gardnerville, NV 89410
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Pepperderr, Home Buyer, Milton, PA
Fri Jan 13, 2012
So that means if we try to get qualified now, the loan process itself would probably be 60 days?

I am not sure how we are really to know what our credit SCORE is, one place I looked it said 693 and if we pay off the credit cards (which I was planning to do anyway) it would probably be around 701. But another website said the score is 748. Does the SCORE really mean anything? We have no late payment for years now and other than the bankruptcy nothing else bad.

What exactally is the settlement date?

If we are pre-qualified but the house sells before we are ready, they just update the pre-qualification once we find another house?

As far as a loan officer, we will have to find one that deals with VA loans right? None of the banks here say they deal with VA loans.

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Sharon Sapp, Agent, Reading, PA
Fri Jan 13, 2012
I agree with Alan. There may be other things you could do to help bring up your score, also. Maybe your lender would put your pre-approval date as of March 1st or whatever date your bankruptcy comes off. VA loans can take 60 days, depending on the required paperwork. If you get pre-approved enough to put in an offer, you could put your settlement date for March without any problems.
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Alan Openshaw, Mortgage Broker Or Lender, Southampton, PA
Fri Jan 13, 2012
Hello Pepper,

Get pre-approved now. It takes a five minute phone conversation.
The reason you need to start now is that you do not know how best to prepare your sitaution for a mortgage. A loan officer can analyze your credit, explain the guidelines by which you must qualify and put you in the best position to buy a home in the future. If your credit is pulled, your score drops a couple of points.........but did you know that paying off an old collection account could possibly drop your score by 30 points or more? Talk to a professional who can give you some good guidance. We can always update a pre-approval when you are ready to submit an offer.

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
NMLS ID 143960
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