Thread: Mortgage/ Credit Question

OK, I've got to begin aggressively shopping a mortgage to several local banks Monday. If each one runs a credit check on me isn't that going to keep dinging my score? Do you have some suggestions on how to get around that?

Maybe you could ask one of them to supply you with the credit report and use that show to other banks. I am sure it is valid as long as it is not outdated.

Outstanding idea! ++++ speed

Multiple credit checks during a 14 day period when shopping for a mortgage will only count as ONE.

you can buy online credit reports for approx $20+/-.... print it out for yourself .

most importantly, you highlight a very reality that inquiries affect credit scores- immediately disallow the bank from checking your credit score from the get go as long as you provide the report.

Originally Posted by Peter2

Multiple credit checks during a 14 day period when shopping for a mortgage will only count as ONE.

Also Some Banks weigh your credit score differently than a credit card would. They weigh mortgage payments heavier than revolving credit. I forget the name of this score but It's not your FICO or Beacon or A single reporting agency.

MY FICO is way up but because of my past mistakes with a mortgage my mortage score is lower but still good.

Originally Posted by Peter2

Multiple credit checks during a 14 day period when shopping for a mortgage will only count as ONE.

This is the right answer. Multiple checks from the same type of institution/loan application count as one during a short period of time.

i.e. If 5 different mortgage brokers run your credit report in the same two-weeks period then it will count as just one inquiry (remember, one inquiry takes around 3 points from your score). If, during the same two weeks, a department store runs it to approve you for their credit card, that in another inquiry.

Thanks for all your help guys. I am on a roll now. ++++speed for you all.

Well I have great news. I just saved a lot of money by changing my car insurance.... Actually, no, I just had a great meeting and it looks like the deal is funded. Closing scheduled for July 7. Thanks for your help guys.

2007.
2008, for what I understood, will "punish" your score less with more inquiries. However, I am not sure what the real difference is/will be.

Hey guys I wanted to share some tips that worked for me this time. Maybe they will work for you too.

Instead of going to the bank and asking for a loan by talking about pie in the sky I decided to do a presentation portfolio. I wanted to go in looking like I knew what I was talking about and having tangible evidence of the merits of the deal.

My first pages were the proposal, merits, warts, requests. Followed by all the documentation I could find to back up my claims. Pictures, assessments, maps, Google Earth view, city zoning info, sold comps, etc. Then I followed up with some documented history of my REI experience. After that I included a copy of the contract as further proof of my seriousness and claims.

I made one and then had several copies made and bound. In another portfolio I provided copies of my financial statement and last 2 years of tax returns. I don't even present this portfolio unless they show some interest in the deal.

The banker that agreed to do the deal thumbed through it and we talked. She made a decision in 15 minutes.

This won't work for everyone but it may help. Good luck.

Congrats Runum!

The perception of expertise (especially when it comes from actual expertise ) goes a LONG way towards influencing potential investors...my guess is that the banker really didn't care much about what your proposal said, the fact that you had put it together likely gave her the confidence that you know this business, you'd done your homework on this property and that the numbers worked out.

A lot of people probably walk into her office with the attitude, "You're the expert, analyze my deal and tell me if it's worth your money." You walked into her office with the attitude, "I'm the expert, I've already given this project my stamp of approval, and all you need to do is write the check." (and you had the documentation to go along with your attitude)

It's a great lesson for anyone who ever needs to ask for money, from friends, family, investors, VCs, etc...

Originally Posted by Bilgefisher

Runum,

Recently came back from a seminar that had credit as one of the topics. You can ask the bank to run a soft hit on your credit report. Many will oblige if you explain the reason. Doesn't always work, but it never hurts to ask.

I wish I had known before wells fargo ran 8 credit checks on me in 6 weeks.

Hey,

You attended a seminar. So can you post some ideas or information which you got from seminar?

It may be helpful for all of us.

Thanks...