How many pre-approvals should I get + bonus questions

5 Replies

Hello friends,

I've got a few specific questions:

- How many lenders do you send your application to for a pre-approval?

- Does each lender's hard pull cause my score to go down? (I read it doesn't if it's all within a week?)

- How long is the pre-approval good for? (I'm finding various answers)

- Looking to purchase this as a second home, and rent it out as a STR when I'm not using it. Anything special I need to know about? Wanting to put 10% down.

- What questions would you ask to qualify a lender, prior to doing the entire application process? 

If you're an Orlando lender and investor, please feel free to message me!

Hey Garret, here are my suggestions...

- I can introduce you to a great mortgage broker in town who has been able to get me and many of my colleagues incredible rates. If you're interested, DM me and I can make the introduction. 

- I don't know the timeframe, but I do know that if it's done within a short time frame, the pulls won't individually affect you. The beauty of going through a mortgage broker is that they pull it once and shop it for you.

- Normally 60-90 days depending on the lender. 

- I don't recommend sharing that piece of information with the lender. Second homes cannot be used as investment properties, but I could be mistaken on this.

- DM me and I can share some more information about a couple of specific questions to ask.

Best of luck on your search!!

@Garret Myers I’ll answer some of your questions for you.

-once you’re Pre-approved by one lender, there’s no need to get Pre-approved again, unless you’re not feeling confident in your lenders underwriting analysis of issuing your Pre-approval letter.

-any pulls within a 30 day time frame by multiple lenders will only drop your scores once. Once you have your scores from the initial lender, why not just shop around with a credit score that you know is factual? Subsequent lenders do not need to pull your credit in order to provide you with a loan quote/estimate. If they say they do, stray far away.

-A pre-approval is generally good for 60 days, a credit report is generally good for double that time. At that point, you would just need to provide your lender with new paystubs, asset documentation and disclose if anything on your credit has changed since initial pull. 

-Fannie Mae and Freddie Mac(conventional loan overseers) states that a credit report is good for 120 days. It generally takes 30 days to close once under contract. So if you’re not under contract by the 90th day, chances are, they’ll have to pull a new report prior to closing.(could potentially be bad for some folks). Some lenders may have overlays above and beyond what Fannie Mae and Freddie Mac require in which you’ll see a 90 day time frame in lieu of 120.

-you are able to rent out a second home, just not annually. 

I hope this helps!

Ray Rodrigues

@Garret Myers  

I would recommend trying to choose one lender and sticking with that. Depending on the lender, the approvals are good for 30-60 days

You can rent out the property and use as a second home, just not on an annual basis. Most of my clients have done 10-20% down on second homes