Started applying for new purchase mortgage today and made a DUMB mistake!

[Math_Rocks]

Started requesting quotes today and stupidly let E-loan run credit and of course we don't qualify for their products until my husband finds a job in the new state we are moving to. Unfortunately, we need to get pre-approved and make an offer in the next couple weeks to have a home to move into in August. (We will be househunting at the beginning of June because that is the ONLY time I can go down to look in person before we actually move.)

We need 100% financing. Our FICOs:

Him EQ 698, TU 704, EX 717

Me EQ 694, TU 710, EX 703

I have a signed contract for 46K and my husband is just starting his job search. (He makes 43K here.) Our debts (including car pmnt) are approx $820/mo. I have requested quotes from Quickenloans, Capital One and Countrywide (our current mortgage holder).

Questions:

(1) I just read (on this forum) that dings to the FICO can happen the very next day from a lender pulling credit. DARN! Should I have the other places where I requested quotes go ahead and pull credit today?

(2) Are there other lenders that I should look into for our situation?

[Tuscani]

I am no mortgage expert.. but I can tell you that there is no window before an Inq dings you.. the relection on your scores is immediate. So.. if you get an Inq at 12:00, your score will reflect the change if your credit is pulled again at 12:01.

[Math_Rocks]

Just heard from Quicken and they had a couple different programs I would qualify for based on the info I gave.

(1) 6.875%, 0 points, est closing costs 2200 with no orig fee and no prepay penalty

(2) 6.5%, .375 points, est. closing costs 2700 (same as above)

(3) 7.125% interest only, 0 points, est. closing costs 2700 (same as above)

(1) is a quote for a much higher loan amount than I think we will end up needing. (2) and (3) are for 30K less and I like the payment with (3) the best.

Should I let them run credit? If I go with them, to get full approval to take with me househunting, I have to pay a $500 deposit to go towards the closing costs.

[Tuscani]

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Math_Rocks wrote:

Just heard from Quicken and they had a couple different programs I would qualify for based on the info I gave.

(1) 6.875%, 0 points, est closing costs 2200 with no orig fee and no prepay penalty

(2) 6.5%, .375 points, est. closing costs 2700 (same as above)

(3) 7.125% interest only, 0 points, est. closing costs 2700 (same as above)

(1) is a quote for a much higher loan amount than I think we will end up needing. (2) and (3) are for 30K less and I like the payment with (3) the best.

Should I let them run credit? If I go with them, to get full approval to take with me househunting, I have to pay a $500 deposit to go towards the closing costs.

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Yea.. just make sure you do all of your rate shopping within 2 weeks of your initial Inq.

[Anonymous]

Excuse me for going almost completely OT  ...

Interest only on 100% financing? And only one income at the present time in the new place?  Might make sense to rent for a short while until you can get some cash together for a down payment.  Just MHO.

Please feel no need to justify your financial decisions to me.  I'm just raisin' the issue.  Best of luck!

[Math_Rocks]

masdeocho , I know you don't expect a justification but because I would agree that many in our situation absolutely should rent first, I want to let you know that we have a child with autism and we do not want to move and then move as this is a big enough transition as it is. We will be very careful to find a home that we can live in long term. I probably still would not feel comfortable except for the fact that I am going into a VERY stable industry and know that my husband will have no trouble finding a job. Thanks so much for your input!

[Anonymous]

Glad to hear you've thought it all through and that you're not offended.  I tend to raise the "yeah, but what about the economics?" side of things, and OPs sometimes get defensive.  With a screen name of "Math_Rocks" you've obviously run the numbers and come up with a good plan!

[Tuscani]

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masdeocho wrote:

Glad to hear you've thought it all through and that you're not offended.  I tend to raise the "yeah, but what about the economics?" side of things, and OPs sometimes get defensive.  With a screen name of "Math_Rocks" you've obviously run the numbers and come up with a good plan!

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HA! I was just going to tell you to check her screen name and not to worry about the numbers! LOL

[Math_Rocks]

You're both kind of funny but let me give you a little tip: most of us mathematicians have no common sense and are lucky to be able to walk and chew gum at the same time!

(No offense to any other mathematicians out there.)

[Tuscani]

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Math_Rocks wrote:

You're both kind of funny but let me give you a little tip: most of us mathematicians have no common sense and are lucky to be able to walk and chew gum at the same time!

(No offense to any other mathematicians out there.)

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Be careful... There are lots of mathematicians at Fair Isaac.  You wouldn't want an unexpected score decrease if they read the forums!!