Prequalification Letter or Preapproval letter for hot housing market?
Hi! We are thinking to be on the lookuout to make offers for a new house in Silicon Valley. But it will take time as buying a property in the $2million range need careful thinking and timing. I know pre-qualification is the ultimate all ready to go state but the banks do a hard credit check and the letter expires in 90 days! Jeez! It hurts the credit score! When Banks are the dictators I guess this is what we have to deal with. When I was shopping to refinance our current loan my credit score was hurt even only a few banks did hard credit check. Anyways a credit score safe approach is a pre-qualification letter instead of a pra-approval letter. But would that hurt winning the bidding war? What do you do? What has your experience be on this? Thank you. TC $400k, before stock crush ๐ญ #mortgage #housing
Pre-approval from a well known lender. Donโt get pre-approval from online only lenders.
Or just get multiple pre-approvals. Never a good idea to put all your eggs in one basket anyway.
400k TC and 2M price point? Does TC include your RSU ?
No.
Hard pulls done within 30 days by a mortgage lender all count as just a single inquiry against your score. So shop your heart out during those 30 days. Even then, if your credit score's high enough, having a few extra credit inquiries even after those 30 days shouldn't make a difference. What is your credit score? To be a competitive buyer, you want a pre-approval, not a pre-qualification. A pre-qualification is usually issued based on what you've stated as a buyer. A pre-approval is what the bank has verified. So a pre-approval carries much more weight. In this market, you will not look like a serious buyer with only a pre-qualification.
Was over 804 before refinancing. But because of several credit checks it is now in 760s!