As I understand, normally before you shop around for the properties, you have to get a Mortgage Agreement in Principle. You'll bring this to the house agents and the buying procedures can begin.
However, a friend of mine said that I should be careful. Apparently, you should only get a morgage quote from ONE lender only. The more you go to different lenders, the worse your credit score will be. Is it true?
After I hear about this, I have been hesitant to go to a lender, because I think I need time to search for the best deals available.
2006-10-13 03:31:10 · 15 answers · asked by lankhai2006 1 in Business & Finance ➔ Renting & Real Estate
I don't think this is true. You can get as many quotes as you like.
I would recommend you use the advice of an IFA (independant financial advisor)
You can find an IFA in the yellow pages or http://www.yell.com
Their advice is usually free and can arrange your mortgage & insurances for free.
IFA's make their money on a commision basis upon the products that they sell to you.
Ask other people that you know to see if they can recommend and IFA that they have used.
2006-10-13 03:40:42 · answer #1 · answered by Frostbite 3 · 0⤊ 0⤋
Most lenders require a full credit report in order to even quote an accurate rate. Credit scores do allow for some comparison shopping but this can be misunderstood.
If a borrower has other inquiries (credit cards, cars, etc) in addition to mortgage inquiries the score can be affected adversely (how much is never quite clear).
2 different mortgage inquiries will usually not affect the score as the bureaus understand that comparison shopping is wise. However, multiple inquiries that result in NO MORTGAGE has an adverse affect. It appears you were declined.
If possible, use a referral from someone you respect. That cuts down the field quite a bit. If there is nobody that fits the bill you are still better off trying to find 1 guy that seems to make sense and authorize only that 1 guy to check the credit, and remember this...A good mortgage broker will be able to clearly explain all fees on a GOOD FAITH ESTIMATE and should have access to enough lending products to find the right loan for you. They can shop the application to multiple banks on 1 credit report.
2006-10-13 05:08:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋
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2017-01-20 10:00:02 · answer #3 · answered by Becky 4 · 0⤊ 0⤋
You can ask as many lenders as you want for a quote. You just need to make it clear that its a quote you're after - and not an application/decision. A quote only tells you how much a particular mortgage will cost - it doesn't constitute an offer. In fact, most lenders have mortgage calculators on their site and since you don't input any personal information - theres no way they can make an application.
What your friend was referring to was making an application. If you get a quote you like, then you will make an application for a decision in principle. This involves making a check on your credit history. When someone makes a check on your credit history, the search itself is recorded. If you make too many applications during a short period of time, it looks like you are desperate or may raise suspicions that something fraudulent is taking place.
2006-10-14 00:15:29 · answer #4 · answered by nemesis 5 · 0⤊ 0⤋
You can obtain quotes from lenders but once you apply for a n agreement in principle the lenders will have normaly done a credit search and to many credit searches can effect your credit score. You are better off talking to an independent mortgage adviser who would go through everything with you and advise which is the best deal and lender for you. You do not have to get an agreement in principle to put offers on a house. If you did that and then it took 4 months to find a house it would have to ben done again and couold then be refused. Drop me an email and I can recommend someone who I trust with giving my family advice
2006-10-13 03:59:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
In essence yes. Each time someone accesses the credit bureau on your behalf there is a record. When lending institutions check your credit they see these and count it against you. You should seek out at least 3 lenders, pick the one that has the programs to suit your needs and have them due a full credit check, and give you a Pre-qualifying letter. In today's world, most sellers will require a formal letter from your lender before they will consider your offer. It's show you can afford to buy. Oh and by the way, working with a Realtor will save you ton's of time and money in the long run. Find your Realtor first, they can help you find the right lender and property.
2006-10-13 03:48:01 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Just getting quotes will not affect your credit rating at all. There is something called a 'footprint' put onto your credit file everytime a full search is done. Lenders can only carry out a full search if you carry on with a full application with them. This rule changed in the past few years so go ahead with your quotes without worrying!!.
2006-10-13 03:44:52 · answer #7 · answered by Anonymous · 0⤊ 0⤋
yes and no its true!
you can go to mortgage companies and see how much they would lend you off your wage as many times and as many companies as you like, but everytime you allow them to do the full credit check on you it leaves a mark on your credit history. So if you went to ten places and got a credit check at each one you would have ten marks on you credit history, and all this wud do to say the 11th company u went to is say to them no we wont lend this person money. It wont say why just the fact you got a lot of marks on you credit. They wont know that you havent taken out all the mortgages or loans etc you were checked out for and even if you told them it wouldnt be enough for them to lend you the money. However you can get these marks taken off your credit history, but it will cost you money and possibly take somtime. My advice wud be to go and ask howmuch you can lend but not allow them to do a credit check until you are ready and happey with there offer. I have been to see about a mortgage to many places and i found Nationwide the most helpful as what im telling you now they explained to me. Yous ee every time you go for a loan, credit card, etc wethere you take it out or not it leaves a mark on your credit history and if you get too many marks in a short period of time it gives u bad credit ratings.
If you wanna know more then ask a mortgage lender or i can possibly ekplain it better if you wanna contact me!
2006-10-13 03:47:26 · answer #8 · answered by alison_aka-hello2000 1 · 0⤊ 0⤋
You can ask for a quote as many times as you like. the quote is only what the morgage firm says what amount they will be prepared to lend you. Only if you sign up to a morgage agreement will it affect you.
2006-10-13 03:45:19 · answer #9 · answered by hakuna matata 4 · 0⤊ 0⤋
Yes it is true what your friend says, therefore i would do your homework or go to a mortgage adviser rather than a bank as they are able to find the best deal on the whole market whereas banks will only ofer you their mortgages!!!!!! Good Luck xx
2006-10-17 02:35:46 · answer #10 · answered by Very Sexy Vixen 3 · 1⤊ 0⤋