Credit hit on Pre approal extention?

[s0805]

Does extension on Pre approval from Bank causes an additional Credit hit?

Note Pre approval is already in place but expires in a month time....Pre approval was done in October last year...

cheers

 

[imbi3]

Does extension on Pre approval from Bank causes an additional Credit hit?

Note Pre approval is already in place but expires in a month time....Pre approval was done in October last year...

cheers

Most likely yes because the application would have expired and therefore need a need a new credit check

 

[Peter_Tersteeg]

Yes, it will almost certainly create another hit on your report.

Almost all lenders require a new application to be submitted after 90 days. This process incurs a credit hit.

It's generally not necessary to get another pre-approval. The first one tells you everything you need to know. Unless your financial circumstances have changed for the worse, there's no point in a new pre-approval.

 

[Jamie M]

Hiya

Which lender is this with?

A preapproval extension sounds like a loan resubmission (I've never actually done one - I can't see the need).

As Pete said - I wouldn't bother with a new preapproval once the current lapses. Just wait until you find your property and then go for formal approval.

Cheers

Jamie

 

[Rolf Latham]

Does extension on Pre approval from Bank causes an additional Credit hit?

Note Pre approval is already in place but expires in a month time....Pre approval was done in October last year...

cheers

Are you buying at auction or with an unconditional contract?

ta
rolf

 

[Redom]

Yes there'll most likely be another enquiry. Not sure its necessary unless your in the 2 situations that Rolf outlined or your situation has changed.

Cheers,
Redom