OT: Real Estate Mortgage Question

[LineTamer+]

Starting to look into 1st time home.

question is, does pre-qualifying for a mortgage affect or show up on a credit report/score?

How often should one pre-qualify? I was pre-qualified 2 yrs ago and haven't been since. Also does it matter who/what company does the pre-qualifying?

Thanks

 

[KAPPER]

yes, it is treated as if you are applying for credit and will show up in the same fashion as if you were applying for a loan. The more loans that you apply for the more it will negatively impact your credit score.

You only need to pre-qualify if you think that you need to act quickly or if you want to get an idea of how much of a loan that you would qualify for,

 

[lapdance]

anything you did in real estate 2 yrs ago means nothing now. if you qualified two months ago, it woud mean nothing now.

 

[joeyfitzclick]

Obviously, outside of late payments, multiple inquiries are the worst thing to see on a credit report and they do affect, directly and adversely, your FICO score.

 

[LineTamer+]

that was my main concern. I had above avg credit score 2 yrs ago and the only thing that changed is I now owe a lot less for student loans and my auto, and I make a little more.

main problem is the only money I have for a down payment is invested, and I do not want to sell anything right now.

I just found out the condo I am looking at is bank owned and being sold as is. It was originally listed 7/1 at $184,900 and has dropped 10g/month to its current price of $154,900. I currently rent the condo next door for $1350/month which is pretty reasonable for a 2bd/2bath. But I feel my mortgage on this place plus the condo fee would be a pretty similar monthly payment.

How to you go about an offer on a bank owned property that is already dropping like a brick?

Also, this is not a place I would want to live in for more than 1-2yrs. And I am sure the place needs completely repainted and new flooring throughout.

Any thoughts?

 

[LineTamer+]

as a side note: another condo for sale in the same complex is listed at $205,000.

The complex is 3 stories with the 3rd level having vaulted ceilings and a fireplace. The bank owned one is on the 3rd level and the above listed at $205,000 is on the 2nd.

I want to schedule a walk through, but the listing agent is saying that I need pre approval before I can schedule.

I am all but sure i would need to drop 10-20g's into it for updates and refinishing. Square footage on these places is just under 1200. Plan would be to live here will I did the work and sell or rent out in 2 yrs.

 

[aceduecetrey]

You can always pull your reports yourself and it will not hit your score. You can then go to a mtg guy and give them to him and ask to be pre-qual'd. He will have to pull your credit himself at some point, but just to get a pre-qual, he can use yours. He will not be all that happy, but remember that the shoe is on your foot right now given todays market and if he will not do it, go next door and they will.

 

[fhmesq44]

buy something else, you don't want to drop $10-20k into a 2 br, 1200 sf, $150k condo in a dropping market. List price of $205 means nothing, sale price and days on market are what matter. Find a realtor and they can navigate you through the process of making an offer and don't hire the guy that has the place listed from the bank. His interests won't lie with you, they will lie with the bank.

Houses are better than condos if you can afford one and I am sure there are plenty available.

 

[FairWarning]

Obviously, outside of late payments, multiple inquiries are the worst thing to see on a credit report and they do affect, directly and adversely, your FICO score.

How many inquiries is too many? What if I want to see my score, does that affect it?

 

[joeyfitzclick]

If you pull your own credit report it does not show up as an inquiry. I would five or six inquiries in a twelve month period will lower your FICO score by itself.

 

[FairWarning]

If you pull your own credit report it does not show up as an inquiry. I would five or six inquiries in a twelve month period will lower your FICO score by itself.

By how much? My credit score was 760, then I opened another account. I owe on 2 CC's $7K (zero interest) and thats all I owe, have 3 others with zero balance. My score dropped to 720, why?

 

[joeyfitzclick]

40 points isnt out of question for excessive inquiries.

 

[SIG]

Your credit is not affected when it is pulled for Real Estate. That is a a big myth. It is affected when pulled for other things. The first step to buying a home is getting pre-approved. You have to know you are looking in the right price range otherwise you could be wasting your time. Any real estate agent who knows what they are doing will not show property to someone until they get pre-approved. I'd suggest you find a Realtor you are comfortable with and work with them. They will be able to put you in touch with a credible mortgage lender.

Also, if this is your first home you should qualify for the $7,500 tax credit. Your CPA will be able to tell you if you do.