1. "Having a mortgage lender pull my credit will hurt my credit score."
According the developers of the FICO scoring model that lenders use, the score ignores inquiries made in the past 30 days. Even if that wasn't true, the pre-approval process is inevitable at some point unless you are paying cash or have another form of non-traditional financing arranged.
2. "I don't want to commit to a particular lender, I want to shop around for the best deal/rate on a mortgage."
3. "Having multiple mortgage lenders pull my credit will hurt my credit score."
This would have to be one of the most circulated pre-approval myths out there. Some lenders will even insinuate this to instill fear into buyers so they won't shop around for other lenders. The FICO credit score model's company specifically states on their website that mortgage inquiries are treated differently than other types of credit inquiries. As mentioned above, the score ignores inquiries made within the last 30 days of scoring. Therefore, if you find a loan within 30 days, the inquiries won't affect your score while you are rate shopping. Also all credit inquiries made within either a 14 day period for the old scoring model or a 45 day period for the new model are only counted as one credit inquiry.
4. "I already know my credit is good so that means I will be approved for a loan."
5. "Its easier to find a house first and then worry about getting a mortgage afterwards."
You can find many reasons as to why this statement is false. The pre-approval process isn't just about getting the approval letter, its about getting important questions answered ahead of time. You need to know the expected down payment, monthly payment, interest rate, expected closing date and how the loan process will work in general before you commit to buying a home. Without having at least an estimate of these numbers, you run the risk of committing to purchase a home that you cannot afford. Most sellers and agents will require a pre-approval, they aren't going to take their house of the market if they don't know that you will qualify for a loan; they could miss out on a buyer that is qualified already.
The pre-approval mortgage loan process at the Lake of the Ozarks is actually very simple. Give me a call today to discuss your financing needs. I'm committed to working with you every step of the way. I'll discuss financing options, offer competitive interest rates and back it up with the FIRST Class Service you deserve. Michael Lasson, Your Lakelender opening the doors to your new Lake Home!
I would love the opportunity to help you manage your Lake of the Ozarks Mortgage Loan or refinance. Give me a call at (573) 746-7211 or send me an email at firstname.lastname@example.org with any questions you may have!!
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Sr. Residential Mortgage Lender
NMLS #: 493712
2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049