New Build Q: Anybody Pay More b/c of 1st Credit Pull w/ Builder AFTER 2nd Pull at Close??

[RobSteal]

Hello,

I am interested in a new build community and had a question about the process and order of how it plays out.

1) Negotiate price and agree on contract

2) Builder runs credit to be approved

3) Time for home to be built (3- 5 months or so passes)

4) Builder checks background again (employment, etc) and RERUNS CREDIT AGAIN roughly 30 days B4 Close

I am aware that a mortgage inquiry credit check will affect your credit roughly 30 days after the initial application. SO that means that on a new build community, after the several months required for the build time to complete the home, your Fico score will be lower as a result on the 2nd credit pull.

I know it's not by much, (maybe 5-7 points) however, my Fico scores are 710 TU and 707 Equifax. I'm just concerned on the second credit pull, my Fico may drop under 700 and give me a much worse interest rate as a result of dropping into the 600's.

Anybody have an experience similar to this where they ultimately had a higher interest rate and consequently paid more? Do I have it wrong somewhere? Any advice?

I appreciate any feedback.

[Anonymous]

My builder did not run my credit a 2nd time. It took less than 3 months for them to build the home and they were able to use the initial credit report that was run prior to the beginning of construction. Each place is different though, but I think a credit report is usually good for a while. I guess its up to the underwriter if they want a report run a 2nd time.

[luvs2barre]

I might be wrong, but I was told for a FHA loan that the credit report was good for 180 days. At least this is what I think my lender told me. I can't remember for sure. We will have the lender pull our reports again right before we go to the underwriter because my husband's scores have changed and his report has changed as well, but in a good way.