LO can't know what he is doing!

[amersafe]

My co worker asked me to pose this question to the forum.She got pre-qualified for a $180,000 mortgage through a broker put a house under contract with a $1,000 good faith paid for a home inspection $400 and gave cc card info for home appraisal in march and was told closing would be April 19 since then credco has pulled her cr 3 times and the broker keeps telling her the loan is getting processed....if so why are they still pulling her credit.....if they had her to do contract & inspection seems like her funding should have been in place...what are your thoughts on this matter folks!

[foofighter74]

Well I don't know why they keep pulling her credit, seems like a broker could do it once to find her the best loan. But it also sounds as though she may be getting denials. 

Getting pre-qualified doesn't really mean much.  Unless you're using it to mean pre-approved, where she was processed through desktop underwriting, and someone looked at her file thoroughly, and issued the pre-approval. 

[amersafe]

so you think the extra pulls could be from the broker shooping her around? what is desktop underwriting? thanks

[foofighter74]

It's software lenders use to determine your eligibility, or approvability I suppose to get a loan.  They input your income, credit info, DTI and so forth and you're either deemed eligible or not so much.

To get pre-qualified, all you really need to do is call a loan officer and say "I make blah blah a year, I have this amount per month in debt i have to pay, and my credit scores are between this and this..."

Obviously, nothing is verified, and thus, not based on hard information.