Newsgroups: misc.invest.real-estate
Subject: Re: Questions about Pre-approval
From: "Baird Spalding" 
Date: Sun, 13 Jul 2003 15:55:03 GMT


On 13-Jul-2003, "Curly"  wrote:

> If I get pre-approved for a mortgage loan, for what length of time am I
> pre-approved?
>
> Also, how long before the "inquiry" or "ding" or whatever it is drops of
> your credit report?
>
> My reason for concern is, say I don't find a home I am interested in
> within
> the time limits of my pre-qualification. And say as a result of this I
> have
> to get pre-approved a second time. But now there is a "ding" from the last
> inquiry, so it brings my rating down. Is that a valid concern?
>
> Thanks in advance

Fair Isaac says that all inquiries made within a two week period are counted
as one and will not bring your score down. Although Fair Isaac's "rate
shopping" policy is in writing, Mortgage Brokers will swear up and down that
it does bring it down, so you better not shop. It's up to you who you want
to believe. The fox or the farmer. In the real world, most pre-approvals are
nothing more than a pre-qualification with a more impressive name. A real
pre-approval is not "subject to verification" other than an appraisal of the
property. It's good for one billing cycle. Next month can bring a whole
different picture. Not to mention the bank may even pull your credit the day
before closing.