Your Questions About Home Loan Pre-approval

James asks…

Will 13 enquiries on my credit report affect my home loan pre approval?

John answers:

Only “hard” hits harm your score. Hard hits are the inquiries that you initiated. “Soft” hits are the hits that show up from pre-approved credit card offers and things such as that. It also depends on what type of credit line was applied for. Each credit card will count as one hit each while all hits for auto and home loans within a 14 day period count as one hit. It will usually take off around 3 points per hit. Keep in mind that each month that passed the affect they have should be dwindling as you keep you accounts current.

Lisa asks…

When filling out a home loan pre-approval app., what is included when listing “liabilities”?

John answers:

Your debts. Car loan, credit cards, installment loans, student loans, child support, alimony, maintenance. Not car insurance or phone bill.

Charles asks…

What should my husband and I do prior to seeking Pre-approval on a home loan?

We plan to begin the process in August so about 6 months from now. Any advice on things we should do or not do from now until then. Besides saving money. Any advice is helpful!

John answers:

Have you printed out your credit reports from
annual credit report .com
They are 100% free – approved by the feds.
Never consider paying for your reports.
If they are in pristine condition get your score (you and hubby’s) from myfico.com

Note: Major lenders like FHA do not go by the score.
They view the reports in detail and make their own decisions.
But it is a good guide for you to know where you stand.

Do you have any credit card debt?
Pay it off in full, and watch your score take a boost.
Credit card debt is extremely harmfull for your credit worthiness.

Do not open any new credit cards or make new loans.
New credit affects the score for the first 6 months.
Do not close old accounts, it will reduce your overall available unused limits.

Do not consider going by the maximum the lender will tell you that you can afford in a home. After all you want to be able to put food on the table.
Do not do any loans that are variable (scams), stick to fixed.
Figure out what 25% of your take home pay is.
That will be a comfortable monthly amount so you can afford to take vacations someday.
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Thomas asks…

I have complete a pre approval of home loan, but I want to discard it and find another lender?

John answers:

As the first answer stated, this is not actually a question. Assuming you want to know it you can, the answer is yes. Any fees you paid to get ‘pre-approved’ are most likely not refundable, but you are not bound to actually take a loan from this lender.
On the other hand, the pre-approval may reduce your chances of being approved by someone else.

Paul asks…

Whats the difference between pre-approval and final approval for a home loan?

I have been pre-approved, but I’m now awaiting final approval. Can someone please explain in detail the difference between the 2. What happens differently in the final approval? Thanks.

John answers:

Here is a website that has a lot of free information about home loans, check it out. They answered my questions.

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