Do you guys tend to get mortgage pre approval before making an offer? I would prefer not to do a hard pull on my credit. Also, how do you guys go about finding the best lender packages? Interested in hearing the thoughts of fellow investors. Thanks.
Almost all listed properties will require you have a preapproval letter before they even consider your offer, especially REOs and short sales.
I wont write an offer for a client without a preapproval. On the listing side, it is an automatic rejection without a preapproval.
If the 2 points a hard pull is going to take off your score is that big of an issue, you are probably in the wrong business.
Good question. As a seller, I insist upon the Pre-Approval and Verification of Funds to prune the lookie-loos and avoid a failed escrow from the inability to get financing.
As a buyer, I would wait for the seller to request either/both and most don't even know about these.
I understand it's only a 2 point loss of credit score, but if I don't find the right property in ..what 30 to 60 days? then it's another 2 points, if I decide I find a better lender, then another 2 points. Maybe the question is to be more certain you've found the right place before gettting pre approval. And then how to find the best lender for me. How do you guys shop lenders to find the best one?
Is there a general consensus as to whether or not using a mortgage broker is a good idea? Is it a waste of money?
The best lender is usually not a large bank, due their own overlays and delays, and not just an independent mortgage broker, but somewhere in the middle....an actual lender that sells direct ot Fannie/Freddie and does FHA. Multiple credit pulls for a mortgage, within 30 days, are treated as one, since FICO knows you're shopping lenders for just one house loan.
@Robert Ped You have to have a pre-approval letter if you want to be taken seriously.
Find a mortgage banker that does direct loan with Fannie/Freddie/FHA/VA and also has correspondence agreements with other investors. This way they will shop your loan across a wide range of investors and get the best option for your specific situation.