Additional Credit Pull after preapproval?

[Blessed221]

Tippy that's good to know and it makes since. I was approved for a conventional mortgage my land contract has matured I was also offered a portfolio loan, are you familiar with the portfolio loan?

[Anonymous]

Not too much because we don't do them however, I do know with these loans the lender /bank can make their own rules because since there is no PMI the bank/lender takes the full default responsiblity when they underwrite it. These loans can exceed the limits of Freddie and Fannies guidelines.. I honestly didn't know they still do them.

[StartingOver10]

Yes, portfolio loans are done, just not as wide spread as they were.

Trustco does them, but in an extremely limited area (Palm Beach County) and the property has to be a primary residence.

Also Seacoast Bank does them in Palm Beach county and Martin county.

I find the portfolio lenders are generally smaller regional banks with a limited geographic reach. You have to look hard for portfolio loans if that is what you need.

[ezdriver]

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@Anonymous wrote:

I am a mortage processor and I have NEVER heard of pulling your credit more than once UNLESS the orignal report has expired, the LO screws something with the first pull like mixing up your SSN#, ADDRESS, DOB, NAME. other than that, your report is good for 120 days for FHA and Convetional 90 days. That same credit that was pulled for pre-approval is still good they should NOT be pulling your report again. I think it's ridiculous for them to risk the customer not qualifing by re-pulling the report if they don't have to, because even if nothing has changed that inquiry alone can cause damage.

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FYI...there are circumstances that make it perfectly reasonable to pull an applicant's credit report morethan once. Sore examples follow:

Borrower paid down/off some debt and the lender needs to see the updated credit report that shows the payment and balance(s).

Borrower applied alone but now decides to apply jointly with a co-borrower.

Underwriter wants to see a current credit report before issuing a clear to close on the file.

I can think of several more.

[Anonymous]

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@ezdriver wrote:

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@Anonymous wrote:

I am a mortage processor and I have NEVER heard of pulling your credit more than once UNLESS the orignal report has expired, the LO screws something with the first pull like mixing up your SSN#, ADDRESS, DOB, NAME. other than that, your report is good for 120 days for FHA and Convetional 90 days. That same credit that was pulled for pre-approval is still good they should NOT be pulling your report again. I think it's ridiculous for them to risk the customer not qualifing by re-pulling the report if they don't have to, because even if nothing has changed that inquiry alone can cause damage.

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FYI...there are circumstances that make it perfectly reasonable to pull an applicant's credit report morethan once. Sore examples follow:

Borrower paid down/off some debt and the lender needs to see the updated credit report that shows the payment and balance(s).

Borrower applied alone but now decides to apply jointly with a co-borrower.

Underwriter wants to see a current credit report before issuing a clear to close on the file.

I can think of several more.

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FYI The 2nd one you mentioned is up to the customer so I wouldn't say it counts! Now as far as the last one well I have NEVER heard of it, I have worked for 4 major banks US Bank, Wells, Chase and currently BOA and none of these banks pulls another report UNLESS it's completely necessary, but just to see if the customer still qualifies is insane, unless is a soft NON SCORE pull none of the banks I have worked for even pulled soft inquiries. Not to say other banks don't do it however I still find it insane, that is the point of the credit having an expiration date! Also it's huge risk. Now we do obtain credit supplements the 1 reason you mentioned but it only to update/add that account that is not a PULL at all. 

[Blessed221]

Thanks for responding experts, so I originally applied for a FHA loan but my subdivision doesn't accept FHA so I was offered a portfolio loan for 7 years just wanted to know if that was a good deal. My bankruptcy chapter 7 was dismissed 3/11 my prev home was included. And yes it's a small bank that's offering me these options I had a land contract with

[anca21bi]

I had my credit pulled every time I made an offer on a house. It was annoying, I know I have credit issues but I never did anything to the extreme. 

[StartingOver10]

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@Blessed221 wrote:

Thanks for responding experts, so I originally applied for a FHA loan but my subdivision doesn't accept FHA so I was offered a portfolio loan for 7 years just wanted to know if that was a good deal. My bankruptcy chapter 7 was dismissed 3/11 my prev home was included. And yes it's a small bank that's offering me these options I had a land contract with

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What are the terms of the deal the bank is offering?

[Anonymous]

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@anca21bi wrote:

I had my credit pulled every time I made an offer on a house. It was annoying, I know I have credit issues but I never did anything to the extreme. 

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OMG ! why? one pre-approval should have been good

[Blessed221]

Hi Startingover, my terms are 5 yrs if I go portfolio my LO is trying to get a 15 yr fixed conventional loan,  my subdivision doesn't qualify for  FHA approvals , I currently had to do an extention on my land contract until my deal has completed currently waiting on inspection then I can close my rate is fixed@ 3.25 but should go lower once I close the loan.