Mortgage/credit score help needed! (Long..)?
Okay, we found our dream house, we made an offer of 130k and our offer was accepted. We had been preapproved through one bank for 125k which was wonderful since we had already planned on putting 8% down. The house is bank owned and they insisted that we be preapproved through their people before the offer was accepted, and we were.
The first person that preapproved us said that she couldn’t get us to closing by the date agreed upon in the contract so we went to a mortgage broker. He said everything would be fine and sent our info out to the banks (or whatever brokers do) and after waiting over a month, he told us that our loan was denied. (My fiance works as an independent contractor and the broker had a hard time qualifying his income) Anyway, so we left the broker and went to a guy at 5/3 bank who said he would have no problem qualifying us and we could still have everything done on time.
Well, when he pulled our credit score we were amazed to hear that our credit scores had dropped significantly due to multiple inquiries from all of the people pulling our credit scores so we can get approved for this mortgage. My fiance’s score dropped from a 740 to a 689 and mine dropped from a 640 to a 616, making me ineligible for the loan. Now without being able to qualify my income, we are only approved for a loan of 100k and now we are unable to get the house after all this.
There has been no negative activity on our credit, only inquiries dropping our score.
My question is: Is there anything we can do about this? Can we dispute the drop in score? How do we go about doing it? Any advice would be much appreciated. We are so frustrated and upset about losing our dream house.
It has only been 1 month and 3 days since we made the offer on the house, so I suppose “over a month” was a little inaccurate. Is 1 month still too spread out of a time frame where it makes it look bad?
Also, as a first time homebuyer, is this something that somebody (anybody) realtor, broker, banks, should have informed us of? We had no idea that by prolonging the process it would negatively effect our credit.