Even more questions on loan applications

kleahc · ‎02-17-2014

First time home-buyer (hopefully, anyway) with even further questions for all of you. BY the way, thanks for all the help so far!! (and if you have answered my posts in the past, please note that some of my infor below has changed.)

OK:

1. I keep seeing articles that tell you to make sure you apply for lots of mrtgage loans at once, so that all the credit pulls are relatively close together. Huh? Does that mean to try to get the pre-approval from a couple of different banks to check for better rates?

2. Timing: my plan was to do the preapproval THEN start working with w realtor. Is that the best way?

3. In my last post, I had asked about online source (Quicken, Lending Tree etc.) and was told NO!!!!! Why? Without opening a can of worms, what are the reasons for not going that route? And will it be MORE difficult for me to get approved through a local bank?

4. Last one! I know it doesn't hurt your credit score to run your own report every so often. But what if I do it more than once per month? Does that hurt my scores? (I apologize if that is a dumb question.)

Credit. I have a 680 credit score after spending two years rebuilding after a series of medical emergencies left my credit in the toilet.

Income. My salary is $46,000 per year.

Source of income. I am full-time employed and have been there for 4 years.

Monthly debt payments. I have no monthly debt payments, but three credit cards with $0 balances, no delinquencies on any of them.

Employment: Have worked at my current job for 4.5 years, and have worked in my field for 13 years.

Assets/Reserves. I have a 401k (but it isn’t much) and I am getting the money for the down payment as a gift from my parents. They are willing to provide up to $25,000.

Location. Asheville, North Carolina.

Property. Single Family home.

Value. Most of the houses I have looked at are around the $160,000-$189,000 mark.

Occupancy. Primary residence.

Transaction Type. This would be a first home purchase.

ezdriver · ‎02-17-2014

@kleahc wrote:
First time home-buyer (hopefully, anyway) with even further questions for all of you. BY the way, thanks for all the help so far!! (and if you have answered my posts in the past, please note that some of my infor below has changed.)

OK:

1. I keep seeing articles that tell you to make sure you apply for lots of mrtgage loans at once, so that all the credit pulls are relatively close together. Huh? Does that mean to try to get the pre-approval from a couple of different banks to check for better rates? ONE PREAPPROVAL IS SUFFICIENT AND IT SHOUDLD COME FROM A BANK, CREDIT UNION OR MORTGAGE BANKER. MULTIPLE INQUIRIES WITHIN A 90-DAY PERIOD FOR MORTGAGE SHOPPING IS CONSIDERED A SINGLE INQUIRY. BY THE TIME YOU SIGN A PURCHASE AGREEMENT, YOU SHOULD KNOW WHICH LENDER WILL BE FUNDING YOUR MORTGAGE. RATES WILL MATTER WHEN YOU ARE READY TO LOCK ON ONE AND THE TIMING OF THAT DEPENDES ON A FEW FACTORS.

2. Timing: my plan was to do the preapproval THEN start working with w realtor. Is that the best way? YES, IT IS PREFERRED. IF YOU BUY A NEW CONSTRCUTION FROM A LARGER BUILDER, YOU WILL BE REQUIRED TO BE PREAPPROVED BY THAT BUILDER'S MORTGAGE PARTNER IN ORDER TO SIGN A PURCHASE AGREEMENT. IF YOU BUY A RESALE HOME, YOUR ORIGINAL PREAPPROVAL WOULD BE SUFFICIENT TO ALLOW SIGNING A PURCHASE AGREEMENT.

3. In my last post, I had asked about online source (Quicken, Lending Tree etc.) and was told NO!!!!! Why? Without opening a can of worms, what are the reasons for not going that route? And will it be MORE difficult for me to get approved through a local bank? LENDING TREE IS NOT A LENDER. IT IS A LEAD GENERATING COMPANY THAT SELLS YOUR INFORMATION TO SEVERAL LENDERS. QUICKEN LOANS IS DIRECT LENDER. FACE-TO-FACE COMMUNICATIONS IS PREFERRABLE TO ONLINE FOR OBVIOUS REASONS. DON'T YOU PREFER SEEING YOUR LOAN OFFICER IN PERSON?

4. Last one! I know it doesn't hurt your credit score to run your own report every so often. But what if I do it more than once per month? Does that hurt my scores? (I apologize if that is a dumb question.) YOU CAN PULL YOUR OWN CREDIT REPORT ANYTIME AND AS OFTEN AS YOU WISH ... BUT I DON'T UNDERSTAND WHY MORE THAN QUARTERLY WOULD BE NECESSARY. ALSO, THE SCORES THAT YOU SEE ON THE ONES YOU PULL WILL NOT LIKELY BE THE SAME AS THE SCORES THAT THE MORTGAGE LENDER SEES IN THE CREDIT REPORT [SINGLE TRIMERGE] THAT THEY USE.

BEST OF LUCK WITH YOUR HOME PURCHASE EFFORTS.

Credit.  I have a 680 credit score after spending two years rebuilding after a series of medical emergencies left my credit in the toilet.
Income.  My salary is $46,000 per year.
Source of income.  I am full-time employed and have been there for 4 years.
Monthly debt payments.  I have no monthly debt payments, but three credit cards with $0 balances, no delinquencies on any of them.
Employment: Have worked at my current job for 4.5 years, and have worked in my field for 13 years.
Assets/Reserves.  I have a 401k (but it isn’t much) and I am getting the money for the down payment as a gift from my parents. They are willing to provide up to $25,000.
Location.  Asheville, North Carolina.
Property.  Single Family home.
Value.  Most of the houses I have looked at are around the $160,000-$189,000 mark.
Occupancy.  Primary residence.
Transaction Type.  This would be a first home purchase.

kleahc · ‎02-17-2014

Yep, me again!

Question about qualifying for amounts: My income is $47,000 this year, employed at the same company for 4.5 years (salary has increased 2% per year). I have zero current debts, but poor credit in my past (670 now, but has been as low as 500) and no reserves (a small savings acount with about $2,500 in it, and a retirement account that cannot be touched prior to age 55) and the down payment is being gifted to me by my parents...

Most houses I have looked at (online) have been in the $170,000-$200,000 range. Am I anywhere close to that level? Down payment will likely be between 10-15%.

Thanks!

DallasLoanGuy · ‎02-17-2014

@kleahc wrote:
First time home-buyer (hopefully, anyway) with even further questions for all of you. BY the way, thanks for all the help so far!! (and if you have answered my posts in the past, please note that some of my infor below has changed.)

OK:

1. I keep seeing articles that tell you to make sure you apply for lots of mrtgage loans at once, so that all the credit pulls are relatively close together. Huh? Does that mean to try to get the pre-approval from a couple of different banks to check for better rates? all credit pulls for a mortgage within 30 days are counted as one pull. you dont need to apply to check rates/fees.... if you know your score any lender can give you an estimate.

2. Timing: my plan was to do the preapproval THEN start working with w realtor. Is that the best way?

3. In my last post, I had asked about online source (Quicken, Lending Tree etc.) and was told NO!!!!! Why? Without opening a can of worms, what are the reasons for not going that route? And will it be MORE difficult for me to get approved through a local bank?   i hear that quicken is a little better than they used to be. lots of horror stories about them on the net. lendingtree isnt a lender. they sell leads to loan officers who cannot get referrals thru other sources

4. Last one! I know it doesn't hurt your credit score to run your own report every so often. But what if I do it more than once per month? Does that hurt my scores? (I apologize if that is a dumb question.) you can pull your own credit every day. doesnt hurt.

Credit.  I have a 680 credit score after spending two years rebuilding after a series of medical emergencies left my credit in the toilet.
Income.  My salary is $46,000 per year.
Source of income.  I am full-time employed and have been there for 4 years.
Monthly debt payments.  I have no monthly debt payments, but three credit cards with $0 balances, no delinquencies on any of them.
Employment: Have worked at my current job for 4.5 years, and have worked in my field for 13 years.
Assets/Reserves.  I have a 401k (but it isn’t much) and I am getting the money for the down payment as a gift from my parents. They are willing to provide up to $25,000.
Location.  Asheville, North Carolina.
Property.  Single Family home.
Value.  Most of the houses I have looked at are around the $160,000-$189,000 mark.
Occupancy.  Primary residence.
Transaction Type.  This would be a first home purchase.

Retired Lender