Mortgage and Real Estate Blog

head_left_image

Don't worry about someone pulling credit when shopping for a mortgage

Shopping for a mortgage loan? The average person DOESN'T need to worry about inquiries on your credit report

We've all heard it before. Having someone pull your credit will reduce your credit score. Sadly, many people end up making some poor decisions based on half truths, and bad information.

The fear of reduced credit scores with the occasional pull from a creditor is the most annoying, misleading, and misunderstood thing I hear every week in the mortgage business. If you are worried about "inquiries on your report", this isn't the concern most people think it is.

What to know about mortgage rate shoppingLooking for a mortgage, auto or student loan may cause multiple lenders to request your credit report, even though you are only looking for one loan. To compensate for this, the score ignores mortgage, auto, and student loan inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won't affect your score while you're rate shopping. In addition, the score looks on your credit report for mortgage, auto, and student loan inquiries older than 30 days. If it finds some, it counts those inquiries that fall in a typical shopping period as just one inquiry when determining your score. For FICO scores calculated from older versions of the scoring formula, this shopping period was any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span.

Furthermore, inquiries, even under the worst of situations, could only account for 10% of your overall score. Most people should have absolutely NO CONCERN whatsoever about inquiries on your credit report unless you have applied with 10, 15, or even 20 lenders in the past 90-days.

Visit MyFico.com to find out the truth about inquiries and your credit score, and STOP WORRYING!

 

Comment balloon 2 commentsJoseph Metzler • September 29 2011 11:47AM
Don't worry about someone pulling credit when shopping for a mortgage
share
Shopping for a mortgage loan? The average person DOESN'T need to worry about inquiries on your credit report We've all heard it before. Having someone pull your credit will reduce your credit score Sadly, many people end… more
What is the value of your home?
share
What's the value of your home (MN & WI Only ) Many homeowners are curious about the appraised value of their home in today's market. An actual appraisal is expensive, and county tax records do NOT always reflect true market value. As… more
New Government refinance options coming soon?
share
Minneapolis, MN : Many reports have surfaced recently that the government is seriously considering a wide range of ideas to assist consumers in refinancing their homes loans owned by Fannie Mae and Freddie Mac to take advantage of today's amazing… more
HARP - Special Affordable Refinance Program
share
HARP - Special Affordable Refinance Program Has your home LOST VALUE? THIS IS YOUR BAILOUT! The funds the Obama Administration has made available for this program come from YOUR tax dollars. Take… more
Is your Loan Officer Licensed, or simply registered? There is a BIG…
share
Is your Loan Officer Licensed, or simply registered? There is a BIG difference YOU need to understand Recent changes to the lending industry requires all loan officers to have a tracking number, known as an NMLS number.. more
USDA Rural Development adds PMI to new loans effective Oct 1, 2011
share
It is hard to move the economy, and especially the housing market forward when they keep making it more difficult and expensive to buy a home.. The USDA Rural Housing Loan will implement a new Annual (monthly) Fee of 0. 30% charged on all… more
FHA 203k loan in MN
share
Found that dream home… but it needs a little work? Is it a fixer-upper? St Paul, MN: The purchase of a house that needs repair is often a catch-22 situation, because the bank won’t lend the money to buy the house until the repairs are… more
FHA loan limits changing Oct 1, 2011
share
NEW FHA loan limit guidelines go into effect on Oct, 1, 2011. Don't be caught not knowing the new limits. Video not showing? Click here to watch Click here to search County Loan Limits in Minnesota and Wisconsin… more