Are Mortgage Pre-Approvals Soft or Hard Pulls?

[WD]

Or does it vary?

I know multiple inquiries of a similar nature within a short time frame, don't hurt my score.  But I'm debating on whether or not I should apply for pre-approvals now...I'm not committed to looking just yet.  And if they're hard pulls, I might hold off for a little bit.

Thanks all.

[ArmyStrong]

Hard. What's your timeline?

[DallasLoanGuy]

hard. and should affect you no more than a handful of points.

what is your score?

inquiries are overrated.

[WD]

EQ is 659 I believe, TU is 668.

Though I recently mailed in some disputes that should boost my score a decent bit (inaccurate balances).

I'm considering doing a pre-approval, just to "test the waters."  See where I'm (and wife) at.

I'm going to set something up with a loan officer and go from there.  My wife really wants out of our apartment and so do I.  I just don't want to jump in if we're not ready.

[Anonymous]

You may find you need the disputes closed and the comments removed before you are approved.  Lenders are getting more concerned about disputes.  Just an FYI so you can leave extra time to handle those if needed.

[superdesi]

WD,

I'm glad you asked that question because I'm in the same exact situation now living in a 1 bedroom apartment.   My scores are very similar to yours and at the moment I would like to look around with an RE agent for houses in my area (which requires the pre-approval letter).   However,  I may not be ready to enter a contract until Fall 2010.

Does anyone know if mortgage pre-approvals expire after a certain period.   Also,  should I shop around for a pre-approval letter which will create mulitple inquires and perhaps multiple credit pulls? 

[Anonymous]

Pre-approvals usually expire after 90-120 days.  You can check with the lender.  After that they will likely need to re-verify things - debt, income, credit, etc.  When you shop for a mortgage within a specific time frame, 14-30 days or something like that, all the mortgage inquiries count as one.  They'll all show up on your report but for scoring calculations will only be used as one.  If you have any doubts about whether you'll be approved or whether you'll be approved for the amount you want, you might want to apply soon.  Then you'll have a few months to sort things out if you need to clean up credit or save more for reserves or whatever.  Then when you find your house you can do the shopping.  Just make sure you leave enough time in the contract.  I would recommend choosing your loan officer based on friends/family/trusted realtor's recommendations.  You want to feel good about them knowing what they're doing for such a big purchase.  Good luck!

[superdesi]

Many thanks for the detailed information.   It's amazing what you learn on this great forum.   It has helped me tremendously over the years.