If I let my Pre-Approval lapse, and re-apply, will it hurt my credit score?
We did a pre-approval because we were given incorrect information about the timing of our move and our income situation. If we do not find a house within the 60-day pre-approval time frame and let it lapse, and we decide a month later, or even a few weeks later, to re-apply (with the same or a different mortgage company) how much will it affect our credit? We have great credit scores right now between 720&790. I just want to know if it is better to rush as much as we can to try to make this happen before the pre-approval goes away, or if we shouldn't stress and just re-do an application if we don't get everything together in time.We applied for a VA loan. My husband gets out of the military right around the 60-day mark, and we want him to see the house prior to putting in a contract and he needs a letter of employment prior to the contract so that we can be approved for the correct amount.*Please don't just ask me to call you.Any advice would be greatly appreciated!Thank you. by jtyler_09 from Desert, California. Jun 14th 2011
Gianni Cerretani (mortgagegodfather)
#32 ranked lender in Georgia - 238 contributions
Good afternoon: If you have already filled out a complete loan application and have had your credit pulled in the last 60 days then the lender should be able to go right back in and should only have to re-pull credit if it goes beyond 120 days from the date the credit was pulled. If they do have to re-pull there should only be a minor hit of no more then 5-10 points which should not affect your pre-approval at all. This is of course assuming that all the tradelines are unchanged and no new debt has been inccured since your last credit pull. A pre-approval does not really mean anything unless the lender has looked at your income documents and done a full pre-approval. Even then it is no set in stone that you will get a full approval. Feel free to shop around as you are allowed by the credit bureaus a 60 days window to shop for mortgages without it affecting your scores. The lender who originally pulled your credit would have been the only affect on your scores as long as no new debt have inccured or any activity has altered on your exisitng tradelines. I have a special Military loan savings program called Homes for Heroes and I would love to see what we could do for you if you have any interest as you can also get a rebate from the realtor as well of 25% of there gross commission- check it out www.homesforheroes.com
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