House Buying Thread

mac5155
Posts: 13839
Joined: Wed Mar 25, 2015 12:47 pm

House Buying Thread

Postby mac5155 » Mon May 04, 2015 2:33 pm

General question... how much does getting preapproved for a mortgage affect your credit rating?

robbiestoupe
Posts: 11556
Joined: Thu Apr 30, 2015 3:27 pm

House Buying Thread

Postby robbiestoupe » Mon May 04, 2015 3:09 pm

We're closing on a house this Friday. It's been a very long and strenuous process for us. We went from selling in a buyer's market to buying in a seller's market, all in the Greater PGH area. I'll be relieved once we sign the papers and the house is ours. For some reason I have an itch to get some projects started on the new house. I've never been the type to be excited about house projects, so we'll see how long this "itch" lasts.

robbiestoupe
Posts: 11556
Joined: Thu Apr 30, 2015 3:27 pm

House Buying Thread

Postby robbiestoupe » Mon May 04, 2015 3:11 pm

General question... how much does getting preapproved for a mortgage affect your credit rating?
I think it all depends on how many times your credit has been pulled recently. I don't know the specific time frames, but if it's multiple pulls over the past say 6 months and they are spread out, it will affect you more than say 3-4 pulls in the same week. The credit bureaus realize that when you are in the process of getting approved for a loan, it's commonplace to have multiple credit reports in a short time frame.

PFiDC
Posts: 9248
Joined: Wed Mar 25, 2015 2:23 pm

House Buying Thread

Postby PFiDC » Mon May 04, 2015 3:12 pm

General question... how much does getting preapproved for a mortgage affect your credit rating?
None?

I really have no idea but I was under the impression that not getting pre-approved just makes it less likely that your offer is accepted.

Miami Vice
Posts: 1505
Joined: Thu Mar 26, 2015 10:48 am

House Buying Thread

Postby Miami Vice » Mon May 04, 2015 3:54 pm

No the preapproval is when they pull your credit - it dings it a few points. They pull it again just before closing, but my belief is that when they do it the second time they are just looking for new credit accounts (or closed ones).

The sellers agent says he can't imagine anything I asked for flying and that the seller himself has lined up a "for sale by owner" buyer incase this falls through.

All in all I anticipated putting a few grand into it this year. For the most part it doenst need much. The furnace will be covered by a home warranty, so perhaps I can blow it up this winter.

PFiDC
Posts: 9248
Joined: Wed Mar 25, 2015 2:23 pm

House Buying Thread

Postby PFiDC » Mon May 04, 2015 4:24 pm

I'm 18 days from closing. I can't wait for this to be over. The stress, to me, is 1000x worse as the seller than it was when I was the buyer.

count2infinity
Posts: 35613
Joined: Tue Mar 24, 2015 2:06 pm
Location: All things must pass. With six you get eggroll. No matter how thin you slice it, it's still baloney.
Contact:

House Buying Thread

Postby count2infinity » Mon May 04, 2015 4:28 pm

I know when my one buddy was going to try and get pre-approved for a loan, he got all the paperwork together for all the banks he was going to apply through at once, and requested that they all do their credit checks within a few day window. That way his score didn't get dinged for every application as there is a certain window that multiple credit checks don't hurt your score, just the initial one.

Craig
Posts: 7020
Joined: Wed Mar 25, 2015 3:09 pm

House Buying Thread

Postby Craig » Mon May 04, 2015 4:31 pm

I thought the window was a lot bigger than a few days for credit pulls like that.

count2infinity
Posts: 35613
Joined: Tue Mar 24, 2015 2:06 pm
Location: All things must pass. With six you get eggroll. No matter how thin you slice it, it's still baloney.
Contact:

House Buying Thread

Postby count2infinity » Mon May 04, 2015 4:32 pm

yeah, I'm not sure on the exact window that multiple pulls don't hurt your credit. It very well may be a few weeks.

robbiestoupe
Posts: 11556
Joined: Thu Apr 30, 2015 3:27 pm

House Buying Thread

Postby robbiestoupe » Mon May 04, 2015 4:39 pm

I think it's two weeks. I just went through this a month ago.

mac5155
Posts: 13839
Joined: Wed Mar 25, 2015 12:47 pm

House Buying Thread

Postby mac5155 » Tue May 05, 2015 11:55 am

How long does the preapproval usually last? We're not in any hurry at all but still want to be able to move quickly if something we like comes up.

LITT
Posts: 7055
Joined: Wed Mar 25, 2015 6:43 pm
Location: Those who don't listen will eventually be surrounded by people with nothing to say

House Buying Thread

Postby LITT » Tue May 05, 2015 12:31 pm

for us there was a 'pre approval' which was sort of like show us pay stubs. cool you have a job, okay you can go with X and then when we signed papers we had to have tax returns, actual employment verification, bank statements, etc which took longer and actually pinged our credit. if you have the documentation they want, should be easy.

Miami Vice
Posts: 1505
Joined: Thu Mar 26, 2015 10:48 am

House Buying Thread

Postby Miami Vice » Tue May 05, 2015 2:24 pm

Preapprovals last for 60 or 90 days, depending on lender.

I was asked for a bunch of additional documentation today. Explaining why I have accounts at different address (my parents), statements showing where I transferred money between my own accounts, its a nightmare. I haven't been this physically sick and unable to sleep in years.

skullman80
Posts: 19205
Joined: Wed Mar 25, 2015 5:02 pm
Location: Monroeville, PA

House Buying Thread

Postby skullman80 » Tue May 05, 2015 2:34 pm

They do ask for everything. My now mother in law gave my wife and I a "gift" to use towards our down payment and she had to then source her bank account too etc. It was a PITA. If you have any unusual withdrawals or deposits that are out of the ordinary be ready to source them.

Miami Vice
Posts: 1505
Joined: Thu Mar 26, 2015 10:48 am

House Buying Thread

Postby Miami Vice » Tue May 05, 2015 2:38 pm

I don't...really. Or at least I don't think so.

I had money in a savings account. I moved it to a checking account to write checks for mortgage expenses. But that's like a big problem for them. Its not a gift, its not mystery cash from under my mattress, its mine.

Gabe
Posts: 1076
Joined: Fri Mar 27, 2015 3:09 pm
Location: St. Cloud (not the cold one)

House Buying Thread

Postby Gabe » Tue May 05, 2015 2:57 pm

closing on mine in 17 days. Ready for this to be done.

Last week, I was asked to explain an inquiry that I had no idea was placed. I never heard of the merchant. had to sign a paper saying that I had no knowledge of the inquiry nor had opened any new credit as a result. Mortgage company was cool with that.

PFiDC
Posts: 9248
Joined: Wed Mar 25, 2015 2:23 pm

House Buying Thread

Postby PFiDC » Tue May 05, 2015 3:03 pm

closing on mine in 17 days.
You're not buying a house in Frederick, MD are you? :lol:

Miami Vice
Posts: 1505
Joined: Thu Mar 26, 2015 10:48 am

House Buying Thread

Postby Miami Vice » Tue May 05, 2015 3:06 pm

My commitment date is next friday, but I won't get my most recent bank statements until the following week. They need that to show my hand money deposit cleared, and to show a transfer from savings to checking.

I had PNC print me a preliminary transaction detail, and the branch manager signed and date stamped it. I hope thats ok - I will give them whatever else when I get it. Until then I'll count sheep at 3am.

robbiestoupe
Posts: 11556
Joined: Thu Apr 30, 2015 3:27 pm

House Buying Thread

Postby robbiestoupe » Tue May 05, 2015 4:58 pm

My mortgage company said that it's pretty crazy now a-day's what the banks ask for regarding information to get a loan. I was approved for a loan using my salary only, since my wife works part time and her hours are inconsistent. However, the bank was all up in arms because she took a 3 month teaching job that wasn't reported on a W-2 but instead on a 1099-MISC. I have no clue why they would even care because we didn't even count her earnings towards the approval.

I had to get tax transcripts for the past 2 years from the IRS, give all my tax return info, sign my tax returns, scan this, copy that...such a waste. Then I noticed they tried to double charge me for the appraisal. I wish I had the $$ to pay for a house with cash. This whole mortgage process and the crazy fees are such cash grab for all the parties involved not named "seller" or "buyer."

Gabe
Posts: 1076
Joined: Fri Mar 27, 2015 3:09 pm
Location: St. Cloud (not the cold one)

House Buying Thread

Postby Gabe » Tue May 05, 2015 6:44 pm

closing on mine in 17 days.
You're not buying a house in Frederick, MD are you? :lol:
Ha. nope.
Palm Beach Gardens, FL

Craig
Posts: 7020
Joined: Wed Mar 25, 2015 3:09 pm

House Buying Thread

Postby Craig » Tue May 05, 2015 6:49 pm

closing on mine in 17 days.
You're not buying a house in Frederick, MD are you? :lol:
Ha. nope.
Palm Beach Gardens, FL
Practically the same.

tifosi77
Posts: 51511
Joined: Wed Mar 25, 2015 1:07 pm
Location: Batuu

House Buying Thread

Postby tifosi77 » Wed May 06, 2015 12:54 pm

I wish I had the $$ to pay for a house with cash. This whole mortgage process and the crazy fees are such cash grab for all the parties involved not named "seller" or "buyer."
Don't forget, mortgage literally translates as 'death agreement'. :wink:

Kicksave
Posts: 3113
Joined: Tue Mar 24, 2015 1:41 pm
Contact:

House Buying Thread

Postby Kicksave » Wed May 06, 2015 1:01 pm

I don't think I ever want to move, unless it's out of town. I hated the whole mortgage process.

Gabe
Posts: 1076
Joined: Fri Mar 27, 2015 3:09 pm
Location: St. Cloud (not the cold one)

House Buying Thread

Postby Gabe » Wed May 06, 2015 3:12 pm

Just got off the phone with the HOA. they are approving our application most likely today, but won't issue the certificate until we complete a phone interview with them. Good grief.

Kicksave
Posts: 3113
Joined: Tue Mar 24, 2015 1:41 pm
Contact:

House Buying Thread

Postby Kicksave » Wed May 06, 2015 4:09 pm

HOAs sound like a pain in the ass to work with.

Who is online

Users browsing this forum: No registered users and 100 guests