can i apply for a mortgage loan (or get preapproved) from two banks on the same day (or a day apart)?

Deal Score0

I have an appointment w/the family mortgage person today but i wanted to shop around as well. can we go see him today and submit the info and then go see another bank the next day? we are looking to own a house by a month or two.

Okay, so we have gone through the process to buy a home…preapproved through a bank for a mortgage loan, found a home, did the offer, and the inspection was just finished Friday. Our closing day is June 20th and in the beginning of May we went on vacation and fixed something where we currently live that used our credit limit of $ 1000. Our realtor said the next credit check the bank will do will be 24 hours prior to closing. Will the credit card keep our loan from going through?
Yes, this is our only credit card.

  1. Reply
    nick k
    February 16, 2011 at 2:35 pm

    You would want to get quotes on the same day if possible because rates change daliy and what was here yesterday may not be the same case tomorrow.

  2. Reply
    February 16, 2011 at 2:35 pm

    Yes, there is a two week window where you should do all your mortgage shopping. During the two weeks, hits on your credit for mortgage loans all appear as one hit. So you should do your shopping as close together as you can.

  3. Reply
    February 16, 2011 at 3:25 pm

    you can get pre-approval and compare rates.

    But you may incur fees in the process…

  4. Reply
    garry b
    February 16, 2011 at 3:34 pm

    This site is well recommended for loans and mortgages

  5. Reply
    February 16, 2011 at 4:32 pm

    Yep…you can get pre-approved (which is better then pre-qualified) by as many mortgage lenders as you want. It doesn’t create a negative mark on your credit report.

    Unless you have very bad credit most lenders can preapprove you in a matter of minutes.

    Before asking for preapproval shop around for the best rates then follow through with the best deal.

  6. Reply
    February 16, 2011 at 5:21 pm

    Yes you can- and probably should.
    Nothing wrong with shopping around-make sure you get info on all the costs!!
    You can make a number of mortgage inquiries within 30 days and it won’t hurt your credit score like applying for lots of credit cards does.

  7. Reply
    nathan p
    February 16, 2011 at 5:40 pm

    Hopefully not! Your realtor may not be correct about that credit check. I have closed over 450 loans in the past, and I have never pulled an additional credit report 24 hours prior to close. Typically, once your lender has your credit report, they would only need a new one if 120 days pass or if a borrower is added to or removed from the loan.

    Additionally, this $ 1000 credit card may not have reported at all yet. Even if it did, the payment on the credit card is very likely too small to impact your qualifications. That said, if you were only 1 or 2 points in your credit score away from not qualifying, you may have reduced your score enough to no longer qualify. Your lender representative should have advised you against making any additional purchases before closing just to be safe, but I think you are probably at very little risk of losing your loan. Opening or using a single, $ 1000 credit card is not a very large change in the scheme of things. If you went and purchased an expensive car with a $ 800 payment that would be a very different situation. But for now I think you can relax. Remember- worry is interest paid on a problem before it is due!

  8. Reply
    February 16, 2011 at 6:17 pm

    The generally accepted margin that the lender will look at in regards to your current credit standings is 80%. That 80% means that if your credit cards and other financial burdens are above 80% of their limit, it is damaging against your credit score as you apply to get the house.

    If the debt on the credit card is only $ 1000, it shouldn’t be a big deal for you to pay off enough of it. Also, if this is your only major debt that you owe to, and the rest of your credit is in good shape, you’ll be fine.

  9. Reply
    February 16, 2011 at 6:56 pm

    i dont know, it depends if u pay it late.. just make the minimum monthly payment and u shouldnt have any problems.

  10. Reply
    February 16, 2011 at 7:32 pm

    Actually very few lenders would re-run your credit report the day before closing. My guess is that your agent told you that to scare you into not screwing up his commission by going out and applying for a new $ 5000 credit card at your local Furniture Barn.

    Assuming you already had that credit card, you’ve got nothing to disclose. It’s generally understood that people use their cards. Opening a new one should be disclosed, though.

    Also, credit reports are often 30-60 days behind on their information.

    Plus, $ 1000 on a credit card translates into only $ 20-30/mo. as a minimum payment on most cards. If your deal is so tight that another $ 30 added to your debts screws up your qualifying, you should be more worried about your ability to repay the loan than if you can even get the loan in the first place.

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