Hi all -- i'm in a very protracted "in contract" period for a new construction condo. The building has finally passed its inspections, but obviously it will still be several weeks/months before the city grants a C of O and closings can begin. My question is this: when should i start shopping for mortgages? I've already started the application process twice (once at offer, once later when i thought... [more]
Hi all -- i'm in a very protracted "in contract" period for a new construction condo. The building has finally passed its inspections, but obviously it will still be several weeks/months before the city grants a C of O and closings can begin.
My question is this: when should i start shopping for mortgages? I've already started the application process twice (once at offer, once later when i thought we were close to closing), but all that accomplished was dinging my credit score for unnecessary credit inquiries.
So the question is, when should i apply again? I want to avoid my application getting stale while i wait for a closing date and avoid unneeded credit inquiries on my credit report. On the other hand, i could get a 30 day closing notice and not have even started the mortgage process, which seems like its cutting it too close.
Any advice? I've reached out to the broker, but haven't gotten any additional information.
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Response by shong
over 13 years ago
Posts: 616
Member since: Apr 2008
You can shop for mortgages and get a rough idea of what is being offered anytime. But I think if you are within 90 days of closing then it might be worth considering an application and even locking in a rate (if you like a certain rate) with a lender that will give you a 90 day rate lock at no cost. You also have the option of applying and floating (not locking) your rate. The benefit to this is that you will get an underwriter approval and can lock once you are closer to the closing date. Make sure the condo is approved with the lender you apply with or have them start the approval process right away. Also, you may want to find out which lenders are capable of closing within 30 days, if necessary. If you have good credit, I wouldn't so much about your credit affected much by pulling credit as long as you haven't been pulling it a lot recently. Sunny.hong@decapitalmortgage.com
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Response by george12
over 13 years ago
Posts: 64
Member since: Dec 2009
If the final inspection was done and the building passed, my understanding, the CofO should be in hand in about a month. You should follow-up with the building management agent; they should have a good idea on timing. Good luck.
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Response by mh330
over 13 years ago
Posts: 105
Member since: Oct 2006
Sunny -- i just realized, you can't apply and lock in a rate until you can get an appraisal, is that correct? If so, it makes it easier for me to get an answer out of the broker by simply asking if we can start scheduling appraisals or not.
You can shop for mortgages and get a rough idea of what is being offered anytime. But I think if you are within 90 days of closing then it might be worth considering an application and even locking in a rate (if you like a certain rate) with a lender that will give you a 90 day rate lock at no cost. You also have the option of applying and floating (not locking) your rate. The benefit to this is that you will get an underwriter approval and can lock once you are closer to the closing date. Make sure the condo is approved with the lender you apply with or have them start the approval process right away. Also, you may want to find out which lenders are capable of closing within 30 days, if necessary. If you have good credit, I wouldn't so much about your credit affected much by pulling credit as long as you haven't been pulling it a lot recently. Sunny.hong@decapitalmortgage.com
If the final inspection was done and the building passed, my understanding, the CofO should be in hand in about a month. You should follow-up with the building management agent; they should have a good idea on timing. Good luck.
Sunny -- i just realized, you can't apply and lock in a rate until you can get an appraisal, is that correct? If so, it makes it easier for me to get an answer out of the broker by simply asking if we can start scheduling appraisals or not.