Often, clients believe that â€œtoo many inquiriesâ€ on their credit reports will lower their credit scores. This is basically UNTRUE when it comes to shopping for a mortgage.
I went to the source to verify this information: Fair Isaac which is the company that created and continues to upgrade and maintain the credit scoring systems. Their website clearly indicates that mortgage inquiries do not affect a credit score.
And I quote: â€œDoes the formula treat all credit inquiries the same?
No. Research has indicated that the FICO score is more predictive when it treats loans that commonly involve rate-shopping, such as mortgage, auto and student loans, in a different way. For these types of loans, the FICO score ignores inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries wonâ€™t affect your score while youâ€™re rate shopping. In addition, the score looks on your credit report for rate-shopping 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.â€
You can read this and more great information about credit scores on their website: MYFICO.com
Trevor Curran NMLS #40140
Thankfully, if you are pulling multiples for a home search, the credit reporting companies won't penalize you because they know you are shopping around. But if you start pulling for a home, then a car, then a furniture store, etc. Then you will get penalized and your score comes down.
SVP/ Associate Broker
Rutenberg Realty NYC
Every lender that considers offering you a loan must run your credit. Under current guidelines, they cannot quote a rate until your scores are in their system. Yes, multiple credit inquiries will not impact your scores.
What you really need is a pre-approval from a lender. Scores are only one factor in determining the program(s) you may qualify.
Chris L. Christie, CMPS
Each will pull your credit.
Remember, though, that credit pulled within a specific time frame (it may be 30 days) for the same purpose only counts as one hit. It's the same as if you were buying a car or other large item.
Further, each "pull" only has a minimal effect on your credit. So: One pull, minimal effect.
Hope that helps.
Good luck and if you need any assistance with your search I would be happy to assist!