• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

Do I really need to get a second pre-approval when buying a house?

January 22, 2013 by Scott Sheldon

Share on Facebook Share on Twitter Share on LinkedIn Share on Email

In short sometimes. Here’s what happens, the bank that owns the property is typically trying to control the transaction both on the listing side as well as on the buying side. Example-a bank such as Bank of America owns a house, in order for them to even consider looking at your purchase offer, they will require you to go through a Bank of America loan officer in “order to make sure you are really pre-approved,” as if the loan officer you are already working with has not done their job. It’s somewhat insulting, but the practice happens daily and buyers have no choice but to play the game if they want to make an offer to purchase the house the bank owns.

Unfortunately, what ends up happening is the other loan officer will often contact the home buyer in an effort to undercut whoever the home buyer was originally working with. It’s not a very ethical practice, but it happens. The good news is you’re not required to use that loan officer, you just have to get a second prequalification through them which typically entails doing a full preapproval as well as giving them permission to pull your credit report, and subsequently your credit score.

Q & A On Second Pre-approvals

 

Do I need to use the other loan officer?

A: No you don’t. There is one caveat to this one entity we’ve seen come up in the past our properties owned by Carrington Mortgage Services. This company mandates you work with them for the loan if you need a credit for closing costs. If you don’t need a credit for closing costs, you’ll just be required to do a second pre-qualification.

If I don’t buy the house, do I still have to have my credit report ran?

A: Yes, this is a byproduct of the second pre-approval. Most mortgage companies require a credit report for them to consider your qualifying ability looking at your purchase offer. Put another way, if you want to purchase that house, your credit report will be ran even if they don’t go with your purchase offer. That’s the risk.

Can my current loan officer I am working with send all of my financial documentation including my loan application to the other bank requiring the second pre-approval?

A: No, it is against CFPB (Consumer Financial Protection Bureau) for the lender you were originally working with to send any financial data over to the second lender. As the motivated home buyer, it’s your responsibility to play along with the rules of the contract. This means you’re going to have to send your financial documentation to the second lender as well as allow them to take a home loan application from you directly.

I am worry my credit score is going to go down if another lender pulls my credit report. What do I do?

A:  In a realistic transaction, everything is negotiable. Your realtor can simply negotiate around the second pre-approval. The other option is to move on to a different house.

What happens if my offer get countered?

A: Great question! The other loan officer is a party to the seller, they are motivated to give the listing agent an idea of your qualifying ability as well as how much more house you could qualify for this influencing the listing agent and seller to “counter” your original offer. This is another characteristic of going through a secondary pre-approval, make no mistake this benefits the seller, not the buyer.

The house I want to purchase says I have to get a second pre-approval with another mortgage company, but they do not own the house. Do I still need to get a second pre-approval with them?

A: No you do not. Unless the seller is a bank, there is no mandatory action needed to get a second pre-qualification with another mortgage company unless you choose to. For example, we had transaction last week where it was a normal listing( ie non-foreclosure, non bank-owned), the listing agent also ran a mortgage company, and they were requiring a second pre0approval. We advised our client she had no obligation to obtain a more pre-approvals. Her real estate agent agreed.

Learn more about second prequalification’s. Not qualified to purchase a house yet? Let us give you a some complementary figures so you can make the right choice for your home buying needs.

Related Mortgage Advice from Scott Sheldon

  • Where To Get Information On Sonoma County Home Buying?

    You will want to speak with the local mortgage loan officer upfront. Ideally a loan…

  • What is the minimum credit score I need to buy a house?

    You will need at least at least the middle credit score of 640 or higher…

  • Why Disputing Credit Accounts May Stop Your Home Purchase

    What Are Disputed Credit Accounts? *Credit Accounts (that report on the credit report) in which there…

  • What Sonoma County loan programs are available for little or no down payment?

    Great question There are several different programs which would help you decide on purchase price,…

Filed Under: Credit Score Questions and Answers, Purchase Mortgage Loans Questions and Answers Tagged With: buying a house, credit score, home buying, preapproval to buy a home

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window