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Unsure of what I should do...help?

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Anonymous
Not applicable

Unsure of what I should do...help?

OK I will try to give as much info on my situation and maybe some one can help me out

 

Equifax score: 779 -pulled mid Feb. (have not check the others yet, only use Score Watch, and haven't had the need to pull any of my other reports)

Income: $49,836 (~$73,000 with my fiance)

Debt: $185 monthly student loan, $0 balance on my $12K limit Credit Card

 

I'm only 24, so I do not have a really long credit history.  I do pay off my credit cards every month and have never had a late payment on my CC, Auto Loan (that I just paid off the remaining $2.8K last month) and Student Loan.

 

My situation is this: Me and my fiance are getting married in November.  We are still saving for this expense (have about $5000 saved, with approx $5000 more to save (we are saving $700 a month between the two of us).  We decided we would start seriously looking at a house in the summer (with the hopes of closing by 12/1).  However, we just saw a listing that was too good to pass up.  A nice starter home 3 Bed Cape on .46 Acres of land (pretty good for the location where the average parcel is about .20 Acres). It is listed at $106,900.  I have $13,000 saved right now alone for Down Payment and Closing Costs.

 

What I am unsure of is this:  We really were not thinking of looking this early.  But this may be too good to pass up.  The property looks to be in good condition (only did a drive by and took a stroll around the property).  I don't want to miss this opportunity, but at the same time if we don't get this one we will most likely wait, like originally planned.  Since I am very conscience of my credit score, would it be bad to go through the whole pre-qualification/pre-approval stages for this one piece of property?  I don't want my score to go down too much if I go through the proccess, do the inspections and find out it's not as good condition from the looks.  Or we get our offer rejected.

 

Let me know what you guys think! 

 

  

Message Edited by clarson on 03-16-2009 01:57 PM
Message 1 of 7
6 REPLIES 6
SonorityGenius
Established Contributor

Re: Unsure of what I should do...help?

You're in good shape. Is the property bank owned and they require preapproval? if not put in an offer via Realtor and see if it gets accepted and than do a full app with lender of your choice (Must do research on fees!!)
Message 2 of 7
Anonymous
Not applicable

Re: Unsure of what I should do...help?

Yes, the property is foreclosed and I need to be pre-approved prior to making an offer.  I am mostly concerned about having multiple hits on my credit (now and then again in the summer if we start to look again).  If this won't affect my score all that much, then I will probably just go ahead with doing it.
Message 3 of 7
SonorityGenius
Established Contributor

Re: Unsure of what I should do...help?

I researched rates and lender fees for a whole week before setting on one lender. I just did the pre approval from them and one inq on all my reports. If offer accepted, I plan to do full app with them and LO said wont need to pull again if within 30 days..

 

Generally even if you appy with more lenders mortgage inqs count as one in a period of 30 days. They will lower your score as do all new inqs. but not more than ~6 points or so depending on your file..

Message 4 of 7
Anonymous
Not applicable

Re: Unsure of what I should do...help?

clarson - The effect of inquiries on your score is overstated. You have scores in the upper 700s, go ahead and apply for pre-approval. Credit is a means to an end, not the end game itself. You've done a great job maintaining your credit so far in preparation for this very moment. If you don't get the house, having one mortgage inquiry on your report when you look again in the summer is going to have a negligible effect on your score.
Message 5 of 7
Anonymous
Not applicable

Re: Unsure of what I should do...help?

Before bothering with pre-approval, I'd look at the house. If it isn't what you thought it would be, you can just wait and do what you'd been planning. If you love it, you can go the same day and get a pre-approval to make an offer, then start shopping multiple lenders. That's what I would do...good luck!!
Message 6 of 7
WannaHouse
Valued Contributor

Re: Unsure of what I should do...help?

You probably will only lose a couple points. If you THINK this could be the one, It is probably worth a couple points.  Smiley Happy

 

Good Luck  Smiley Happy


Kathy


We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.

Message 7 of 7
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