Credit Score in Miami>Question Details

Tara, Home Buyer in Miami, FL

Would it hurt our credit scores if we got preapproved for a home loan, but then didn't use the loan?

Asked by Tara, Miami, FL Tue May 31, 2011

We are looking into buying an investment property for vacation rentals, and would like to know how big of a mortgage we qualify for. This and other factors will help us decide if we go ahead w/the purchase. But if our credit score would be negatively affected by ultimately not using the preapproved loan, then we'd try to figure out how much banks would give us using some other method.

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3
Good morning Tara,

When shopping for a mortgage, the initial inquiry on your credit report will have an effect on your credit score, albeit minimal according to http://www.myFICO.com All other inquiries in a 30 day period after the initial inquiry have no effect on the score as they are all treated as a single inquiry by the credit scoring system.

If you do not use the preapproval it will NOT hurt your credit score, only add an inquiry with a minimal effect.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Wed Oct 24, 2012
Hello Tara,
A credit check was performed in order for you to obtain your pre-approval letter from your lender. You are able to have a credit check done a few times in a 30 day period without it affecting your total credit score if you are shopping around for a mortgage.
Since you already have your pre-approval then you shouldn't be concerned as it probably lowered your credit score very slightly if at all. It doesn't matter if you go forward with the loan or not as it is the credit checks that ding your total score.
Hope this is helpful.
Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Tue May 31, 2011
Only Fair Issacs can tell you for sure how a credit inquiry will affect your score, but in general one inquiry does not have much, if any impact on your credit. What does impact your credit is multiple inquiries in a very short period of time.
0 votes Thank Flag Link Tue May 31, 2011
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