Quote:
Originally Posted by nyalpine90
Thanks guys for the input.
we have a budget, 10% for down payment. Ideally we want to put 20% down to avoid PMI. At the same time we want to have some funds for emergencies. I know PMI drops onces 20% is met. It all depends if we find the right houses. How long is pre approval good for? what happens if preapproval expires? does it effect credit score down the road?
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PMI lasts until 20% equity is established IF you have a conventional loan. With FHA loans on the other hand PMI is there for the life of the loan unless of course you refi.
Pre-approval is usually good for 30-60 days, sometimes 90 (probably not right now though). I would say do not get pre-approved unless you are 100% set on buying next month. Credit is affected during the pre-approval when lenders pulls, but you could pull as many times as you want during a 45-day period for the same thing. Technically you could get pre-approved and go to another lender with the letter and have them beat the "numbers" they will pull credit, but it won't be affected. Credit bureau knows you're shopping around.
Also, I would avoid big banks, they have too much on their hands right now, best rates will be found at local credit unions.
PM if you have more questions.