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Pre-approved!!!

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bosox52981
Established Member

Pre-approved!!!

Just got FHA pre-approval for purchase price of 300,000 from 2 lenders (soon to be 3). We were aiming for pre-approval from a small local bank, a medium sized bank and one of the big-banks, figuring we can compare differences in closing costs and make a decision who to ultimately use. After going from a middle score of 512 last year to a middle score of 640 is an awesome feeling. Now the REAL fun begins (part serious, part sarcastic)!

Message 1 of 7
6 REPLIES 6
bosox52981
Established Member

Re: Pre-approved!!!

Just have to say that these threads have been amazingly informative and helpful. Quite a few knowledgable folks from the mortgage industry here!

Message 2 of 7
Anonymous
Not applicable

Re: Pre-approved!!!

ok we are in the process of hopefully getting a preapproval also coming from a mid 530 score 6 months ago to 640 now! My I ask why your using multiple lenders? won't this effect your score? We are using a family friend just 1 lender

 

should we be using more?

Message 3 of 7
bosox52981
Established Member

Re: Pre-approved!!!

If you shop around lenders within a 14-day (I believe, not 100% sure, could be longer), all the multiple inquiries are treated as 1 when it comes to hit on FICO score. In general, lenders may offer different interest rates, however for FHA, the interest rate is generally the same for a 30-year fixed mortgage, at least that is what we are seeing, since it is a federal program. However, there can be variations in closing costs (fees not related to FHA) from one lender to the next, that is why we are getting pre-approved from a few places to keep our options open. We do not have a house under contract yet, but when we do, we will only be formally applying with one lender. We also like the idea of having some back-up options in case we hit a snag.

Message 4 of 7
missdre
Established Member

Re: Pre-approved!!!


@bosox52981 wrote:

If you shop around lenders within a 14-day (I believe, not 100% sure, could be longer), all the multiple inquiries are treated as 1 when it comes to hit on FICO score. In general, lenders may offer different interest rates, however for FHA, the interest rate is generally the same for a 30-year fixed mortgage, at least that is what we are seeing, since it is a federal program. However, there can be variations in closing costs (fees not related to FHA) from one lender to the next, that is why we are getting pre-approved from a few places to keep our options open. We do not have a house under contract yet, but when we do, we will only be formally applying with one lender. We also like the idea of having some back-up options in case we hit a snag.


Congratulations!! And thanks for the explanation. We were planning to just get one pre-approval, but I like the idea of having a backup, as well as comparing fees from different types of institutions.

Message 5 of 7
bosox52981
Established Member

Re: Pre-approved!!!

@missdre: That ("shopping around period") is just my understanding based on what I have read here, not 100% sure, so don't quote me on that. Maybe one of the mortgage experts or moderators can chime in...

Message 6 of 7
MBOhio2
Established Contributor

Re: Pre-approved!!!

From what I understand about the "shopping around" period, one of the main FICO scoring model (forget which one, maybe TU04??) uses 14 days while the rest use 30 days or 45 days. If you want to be conservative and ensure that you only get hit with 1 inquiry under all of the different scoring models, then you should do it within 14 days.

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
July 2017 Current Scores: Approx 710 (waiting for official updates)
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