Frozen in pre-approval limbo

4 Replies

Newbie out of state investor here and hopefully my question makes sense (still learning terminology). After you get pre-approved with a lender, how long are you 'stuck' before you can pull the plug and look in another area for property using a different lender? I spent about four months doing my homework in a market prior to getting pre-approved. Now, about six weeks into my 'serious-ready-to-buy-search' it's looking like slim pickin's isn't going to change any time soon. I don't want to jump into another market and try to get pre-approved due to the hit on my credit score. Are there other options besides "you're stuck for 90 days"? 

@Ken Wheeler

At no time are you ever "stuck" with a lender.  I've seen borrowers bring 2 or more lenders to the closing table then choose at the closing table.  Don't recommend doing it, but it is perfectly legal. 

As a mortgage broker, I get nervous 2 weeks into a loan if the lender isn't performing up to par or as quickly as expected.  I will pivot and pull the loan out and move it to a back up.  I always have at least one back lender on board.  I rotate them and they know who they are and what their current position is.  

The point is, if the lender you are with isn't getting the job done or you found a better one, switch!  Many lenders are able to lend in various locations.  Is your current lender not able to lend in the new market you are looking into?


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@Ken Wheeler  As mentioned above, typically there is minimal score damage from shopping around with different lenders in different areas.

I just went through the process of refinancing 2 rental properties for a cash out refi, to use as the downpayment for my own home.  I had credit pulls in March, Aug and Oct for the primary house (still pre-approved and searching, the market is tough).

I had 3 pulls from two other lenders for the rental refinances, in June, July & Oct, and in the end, my score is almost exactly the same.

<< After you get pre-approved with a lender, how long are you 'stuck' before you can pull the plug and look in another area for a property using a different lender? >>

Loan pre-approval applies to you, not the property, to a specific maximum loan amount.  If you're satisfied with the lender that approved you, you can stick with them until you find a property, no matter what market you end up in.

BTW, conforming (Fannie Mae and Freddie Mac) loan limits increased today in every market.  Here's the announcement.

Catherine Coy