Help w/timing: preapproval/shopping/inquiries

[GA8080]

Can someone help me understand the timeline of the whole mortgage process? I am very hung up on inquiries because my husband and I are going to be right above the 620 mark. We own a house that we will be selling and using the equity for a down payment on a new house. I don't want to put our house for sale until we know we will be preapproved. If we allow them to run our credit for preapproval, we will have an additional inquiry. Husband currently has 3, I have 4 (well a bunch from auto loan shopping that I'm counting as 1 of the 4) I get that we have 30 days to shop, but if we have to put our house for sale and sell our house, find a house that we like, shop for rates, and close on both, that's never going to happen in 30 days. If they run our credit again right before the closing, what if our scores dropped from the inquiry?

Also, when do you shop for rates? Do you just get one preapproval and then shop after you make an offer?

I'm so confused! When I bought our current house, I still lived with my parents and didn't have to worry about selling. The house was bank owned and they covered closing costs if I used their lender so I didn't do any shopping. There are so many factors this time!

[oldman425]

I have 20+ inquries and was able to pre approved by two different lenders and the approvals are good for 90 days.  Just don't apply for any other new credit and maintain the credit you have now by making all your payments on time.  Another thing to keep an eye on is your debt to income ratio and the amount of utilization you currently are at.

[Anonymous]

Yeah I had quite a few as well.  I just today wrote how I TBD app'd with another lender (over 2 weeks later) to compare fees.  As long as you state there was no additional debt incurred by the inquiries, you are good.    However do NOT go out and app for credit cards, new car, etc.  those inquiries you DO NOT want.  They are going to drop your score. 

Dont put so much stress into the process that needn't be there.

What I would do is pick 2-3 lenders you might be interested in.  You dont need to 'shop for rates' all over town.  Rates are rates, and fees are competitive or so I have seen.  At most I would do 2 (which I did), but no more than 3.  Just MHO

[GA8080]

Thank you both, that helps put me at ease. So the "shopping" is done right off the bat with preapprovals, which are good for 90 days?

[Anonymous]

Yes.  My lender just had to re-run my CR with a HP because my 90 days are up Friday, and we arent due to close for about another 5 weeks. 

[H-B]

Your lender don't have to pull your credit again to quote you interest rate. You have pre-approval, when you are ready for mortgage just shop for interest rate and closing cost.  

[Anonymous]

When you are fully prepared financially to sign a contract on a home and to begin looking might be the time to get pre approved. I agree with researching and picking 2-3 lenders to app with to compare loan products and shop for your best deal for your situation. For the same type of loan app the extra inquiries won't matter within a short period of time. Go ahead and gather all your docs now. Good luck!