Upset over hard pull

[rngrwalker]

I was talking to who was going to be my broker about getting ready to apply for my mortgage in June, since it's the 3 year mark of my short sale. He said that if I had 5% down, he might have a lender who could offer a portfolio loan. Because conventional sounds better to me than FHA and that meant that I could actually buy now instead of waiting 3 months I agreed. He did the credit pull on monday and was working on getting me the pre-approval letter. Fast fwd to yesterday, he called me and told me that we are going to have to go FHA because my short sale doesn't age until June (which he knew that) and therefore I couldn't do conventional due to Fannie Mae guidelines. Needless to say I am extremely upset because I knew I couldn't go conventional if the lender followed Fannie Mae/Freddie Mac and I feel like I was misguided. 

What I'm upset about is that I can't  apply until June 11, he did the credit pull on March 7th, so the 90 days window will expire 4 days before I can apply again. How will it affect my credit when come June 11 when I apply AGAIN. Also, I know that the FHA number they issue can't be done until a day after the 36 months of the short sale expire, but can I put an offer in a house let's say end of May? can they issue a pre-approval or do they need an FHA number as well to issue a pre-approval? My mortgage scores were 674, 674 and 668. I don't want the score to lower due to the hard pull last week and the new one I will have in June.

Thanks in advance!

[Revelate]

Some amount, maybe, hard to say and depends how many inquiries are within a 1 year scorable range anyway and we don't know the breakpoints well.

Don't borrow trouble as the saying goes: you might not lose anything at all and inquiries are incredibly minor in the algorithm anyway.  As I know from personal experience you can make far worse mistakes on your credit report than a random inquiry across 3 bureaus.

Plus now you know exactly where you stand mortgage wise if you hadn't done a 3B pull anyway, and there's some wisdom to doing a pull early to get any JDB's out of the woodwork who come sniffing around when you're starting the mortgage process... if one of those comes out and you have the time to resolve it before you do the mortgage app for real, that random pull was the best decision you could've made.

[ashjt2011]

You live and you learn! Next time you know to make the LO wait a few days  

But in all actuality, I wouldn't worry to much about it. Generally the average score drop for a hard pull is 5 points when it comes to mortgages. Your 5 points you may drop won't affect your approval necessarily and will be made up once the new mortgage reports and you make a few on time payments. 

[rngrwalker]

Thank you for the replies. I'm still upset about the situation but whatever. It gives me a few more months to keep saving for the house.

[ezdriver]

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@rngrwalker wrote:

Thank you for the replies. I'm still upset about the situation but whatever. It gives me a few more months to keep saving for the house.

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You have every right to be upset because that LO lied to you ... or is incompetent. It is clearly a bait and switch move on the LO's part. He offered you a portfolio loan suggesting that your usual FHA wait time is three years and you were not there yet. I would contact that LO's manager and tell tham that you consider their operating practice to be fraudelent. Then I would avoid that lender like I would a angry rattlesnake.

You will be ok with that one inquiry once you are ready to start your hoe-buying journey again. Next time someone offeres you a mortgage program outside of what you are already familiar with, ask for the lending/underwriting guidelines/criteria in writing before making a decision on whether or not to pursue it.

All the best to you.