Ed, can you prequalify a buyer? - Posted by Scott M.

Posted by Scott M. on March 24, 2001 at 15:54:22:

Bruce,

I believe my score had already dropped before going to GMAC as a result of the mortgage broker’s work. He may have tried a few lenders, I hadn’t thought of that. But would a few inquiries make such a big difference? Every lender has different requirements so if the first couple weren’t interested, would that be enough for GMAC to read me as a risk? I was told by the gentleman at GMAC that he “was going to try to make it work” which may explain the inquiry on his part. It is possible that he didn’t get an additional inquiry though because at my Realtor’s request, I believe my first broker had faxed over some of my information to GMAC which, I believe, included my credit report(s) but I’m not sure.

Someone recently told me that when you receive “Preapproved” credit card offers, the potential creditor has looked into your credit report and that you can have all unauthorized inquiries blocked. I’ve been receiving a stream of these for a long time. So yesterday, I called a number to have them blocked. Perhaps this would account for some of the inquiries. But wouldn’t a lender know the difference? Can they tell which ones were authorized and which ones were not? BTW, I’ll post that number I mentioned above in a separate post for everyone to use.

Anyway, I thank you for your help. If you have anymore questions, feel free to ask.

Best,
Scott M.

Ed, can you prequalify a buyer? - Posted by Scott M.

Posted by Scott M. on March 23, 2001 at 20:35:32:

Ed,

My last deal fell through when the lender my mortgage broker found for me backed out at the last minute. They weren’t satisfied with the cushion in my checking account. After closing, I would have had about $600. But I would have also gotten a few thousand in credits from the seller (capital improvements) as arranged in our contract. Don’t lender consider this real money? Why wouldn’t that be factored in by the lender?

I may explore getting pre-qualified for a loan in the near future. Is this a service you offer? Also, how stringent are your approval requirements? Finally, just for clarity, what’s the difference between being pre-approved and pre-qualified?

Thanks,
Scott M.

Re: Ed, can you prequalify a buyer? - Posted by Ed Garcia

Posted by Ed Garcia on March 24, 2001 at 12:44:17:

Scott,

Nothing ventured, nothing gained. Let’s give it a try. Monday morning call Neal Johnson at (909) 944-0199, tell him I told you to call him. I’ll be in the office also, if you feel you need to talk to me about your deal, fell free to ask for me.

Ed Garcia

One Concern… - Posted by Scott M.

Posted by Scott M. on March 24, 2001 at 13:26:49:

Ed,

I am interested in trying to pre-qualify but I have one concern. After my first lender backed out, I went to GMAC Mortgage. I gave them all the pertinent information as needed to apply for a mortgage. It turns out, I had two strikes against me.

  1. I didn’t have six months reserve funds to guarantee I could make mortgage payments for six months in the event I lost my job tomorrow. (I’d say that’s a steep requirement when you’re just starting out in this business)

  2. My credit score had dropped “because of so many recent inquiries into my credit.” So many? I only went to one mortgage broker before going to him. The way I see it, there should have only been one recent inquiry.

So my concern is this, suppose I try to pre-qualify with you and you have the same six month requirement and on top of that, you see the same mysterious multiple inquiries and decide you cannot back me. With so many inquiries already (Most of which I don’t know how they got there), would it be wise to add yet another to the list only to be denied?

I simply don’t understand this credit business. My credit score at one point ranged from the upper 500s to around 650 depending upon which source you used. I was told my debt/income ratio was very good. I’m just a little shaky as far as what the best next step should be.

Meanwhile, there are easily 5 excellent properties within my grasp…none of which I feel confident about obtaining financing for even though I was told not long ago that I shouldn’t have any trouble obtaining financing for anything up to $100,000. What the heck? :stuck_out_tongue:

Well, one thing is sure. I’m a little frustrated but I’m not quitting. I may have to change my plan and be patient but I’m in this for the long haul. Real estate investing is the best!!

I hope you can shed some light on this for me. Sorry this is so long.

All the Best,
Scott M.

PS I don’t usually get home from work until around 3:40 PM Virginia time. Is there another time that I can call you?

Re: One Concern… - Posted by Ed Garcia

Posted by Ed Garcia on March 25, 2001 at 03:24:42:

Scott,

You don’t say which Virginia you’re in. If you’re in WEST Virginia, I wouldn’t be able to do your loan. If you’re not in WEST Virginia, then call me Monday after work, that will be fine.

Ed Garcia

Re: One Concern… - Posted by Bruce Lawson

Posted by Bruce Lawson on March 24, 2001 at 14:45:43:

Scott, I know your post was directed to Mr. Garcia, but I would like to respond.
First question; Did your score drop prior to the GMAC inquiry? The reason I ask if GMAC saw you did not have the required funds in your savings account they should not have pulled your credit. You have a right to know who is looking into your credit file without your permission. If GMAC put a prerequesite like having six months of funds to assure mortgage payment and they saw you did not have that,there was no reason for them to go any further. What I am trying to say here is if you have unauthorized inquiries then you have a right to request they get removed from your credit reports.

Second Question; What did your credit look like when you went to the first place? If your credit score was below conforming that mortgage company may have tried to get you financed at a couple of lenders. If that was the case that would explain the extra inquiries.

Sorry for all the questions, I hope Mr. Garcia has some helpful information for you. Feel free to contact me if you have any questions for me.