Personal Finance

getting multiple mortgage pre-approvals damage my credit rating?

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  • Nov 9th, 2013 11:40 pm
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Deal Addict
Jul 17, 2009
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Using a mortgage broker is a faster way of shopping around for rates
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Jul 11, 2010
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enter wrote:
Nov 8th, 2013 7:26 pm
you dont need to pull credit to secure a rate, a lender can just put a shell application on the system and it locks in the rate for 90 days....
It is the lender that has determined the rate. No agent will submit a shell application to a lender as that is the same as submitting fraudulent information. Also a credit reort is required as there is a minimum score thzt has to be met to secure a preapproval.
Doug Boswell
intelliMortgage Inc. Brokerage #12326
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dougboswell wrote:
Nov 8th, 2013 8:15 pm
It is the lender that has determined the rate. No agent will submit a shell application to a lender as that is the same as submitting fraudulent information. Also a credit reort is required as there is a minimum score thzt has to be met to secure a preapproval.
sure, thats why the client should go to the actual lender and not an agent. for example TD bank, put a shell application on their system, they don't need to pull credit, and they can get a rate guarantee for 90 days. This is not about getting a preapproval, this is about getting a rate hold
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Jul 11, 2010
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enter wrote:
Nov 8th, 2013 8:44 pm
sure, thats why the client should go to the actual lender and not an agent. for example TD bank, put a shell application on their system, they don't need to pull credit, and they can get a rate guarantee for 90 days. This is not about getting a preapproval, this is about getting a rate hold
My last reply #13 discussed the importance of the rate hold.
Doug Boswell
intelliMortgage Inc. Brokerage #12326
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huh? I'm not questioning the importance of rate hold. I am saying people can get a rate hold through the banks without having to do a pre-approval. All they need to do is go into the bank, put a shell application system on, tell them how much the mortgage amount will be (cant decrease by more than 5%) and thats it, rate hold for 90 days.....i guess agents need to 'preapprove' and do a credit check for the same thing...
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Jul 16, 2003
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enter wrote:
Nov 8th, 2013 7:26 pm
you dont need to pull credit to secure a rate, a lender can just put a shell application on the system and it locks in the rate for 90 days....
and often, that kind of "rate hold" without an actual application for a pre-approval is the one that means nothing to the client, as lenders easily decide not to honour them later on. I have seen hundreds of posts here, where people went to their banks, paranoid about having someone looking at their credit, and the bank employee said "we can get you XX rate for 90 days".. when people found a property and came back, the same lender said "rates went up recently and you did not have a pre-approval - only a pre-qualification". TD does provide rate holds without any underwriting, even on the broker side... but they still require an application with a client's name. employment details, etc. A LOT of lenders actually hedge those pre-approvals, so they cant (or simply dont want to) lock a rate for everyone and anyone just for the sake of it.
Andre Oliveira - Mortgage Agent
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laptop-tech wrote:
Nov 9th, 2013 11:50 am
and often, that kind of "rate hold" without an actual application for a pre-approval is the one that means nothing to the client, as lenders easily decide not to honour them later on. I have seen hundreds of posts here, where people went to their banks, paranoid about having someone looking at their credit, and the bank employee said "we can get you XX rate for 90 days".. when people found a property and came back, the same lender said "rates went up recently and you did not have a pre-approval - only a pre-qualification". TD does provide rate holds without any underwriting, even on the broker side... but they still require an application with a client's name. employment details, etc. A LOT of lenders actually hedge those pre-approvals, so they cant (or simply dont want to) lock a rate for everyone and anyone just for the sake of it.
that`s not true. All the lender needs is the clients profile, start a shell application, and need amount of the mortgage. They don`t need to pull credit, they don`t need to add employment on file etc. The bank will then hold 2 things, creating the application, the system will automatically hold the base rate for 90 days. Then the representative/mortgage advisors sends in a request to have pricing discount approved. That discount is valid for 90 days, as long as the original estimated mortgage amount does not decrease by 5%. Again I can't speak for you agents, but this is how the banks do it.
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So what you are saying is that this is the procedure all banks use? I have been on both sides (bank employee and mortgage agent) and I can reassure you that this is NOT "how the banks do it".
Andre Oliveira - Mortgage Agent
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laptop-tech wrote:
Nov 9th, 2013 4:19 pm
So what you are saying is that this is the procedure all banks use? I have been on both sides (bank employee and mortgage agent) and I can reassure you that this is NOT "how the banks do it".
really? you can reassure?...That's funny, when I went mortgage shopping last year for my first home, that was how 3 banks did it.
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So, your expertise comes from shopping for a mortgage at one point in time, not from actually working in the field, right?
Andre Oliveira - Mortgage Agent
Mortgage Intelligence - FSCO# 10428
Sr. Member
Jan 19, 2009
893 posts
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laptop-tech wrote:
Nov 9th, 2013 11:15 pm
So, your expertise comes from shopping for a mortgage at one point in time, not from actually working in the field, right?
that was just to show that 3 different banks 'do it' like i said, I work in the field and I see first hand its done this way too. I hope you don't provide your clients with false reassurances like above, its too bad agents can't provide this feature like the banks do.
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Apr 16, 2007
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laptop-tech wrote:
Nov 9th, 2013 11:50 am
and often, that kind of "rate hold" without an actual application for a pre-approval is the one that means nothing to the client, as lenders easily decide not to honour them later on. I have seen hundreds of posts here, where people went to their banks, paranoid about having someone looking at their credit, and the bank employee said "we can get you XX rate for 90 days".. when people found a property and came back, the same lender said "rates went up recently and you did not have a pre-approval - only a pre-qualification". TD does provide rate holds without any underwriting, even on the broker side... but they still require an application with a client's name. employment details, etc. A LOT of lenders actually hedge those pre-approvals, so they cant (or simply dont want to) lock a rate for everyone and anyone just for the sake of it.
I would clearly state you are correct on policy
laptop-tech wrote:
Nov 9th, 2013 11:15 pm
So, your expertise comes from shopping for a mortgage at one point in time, not from actually working in the field, right?
That is funny how a few people on these forums are like this.

I'll have to say though that I question enter's employment capacity at any bank that he once 'worked' at after these postings including his postings on this thread
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