What to know about "rate shopping."
Looking for a mortgage or an auto loan may cause multiple lenders to request your credit report, even though youre only looking for one loan. To compensate for this, the score ignores all mortgage and auto 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 auto or mortgage inquiries older than 30 days. If it finds some, it counts all 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 is any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score.
The cost of money is the cost of money. It really does cost all lenders about same so the differences come from fees, points, spread and such.
Only if they run your credit reports for each application. I agree with Sylvia to either get copies or bring your own report to the meeting. Make sure to get the combo report that provides information from all three main reporting agencies. It does not "ding" your credit for you to get a report for yourself.
Here are two great resources for credit scores:
I see that you are getting a number of answers on your question. The truth is (according to Fair Issac) it does not hurt your credit to have it pulled by multilple (mortgage) lenders. It does hurt your score if you run multiple requests in search of credit card debt. As most lenders (brokers) have the same programs, I would suggest that fairness alone is the reason why I would request that you limit applying all over town. Calling and asking for their current rate is very fair, but asking each of them to approve you just adds to their overhead and increases their costs. In this credit environment we in the mortgage business are feeling the pinch big time and appreciate not getting our hopes up. Regards, Russ Glines
One advantage of a mortgage broker is that we pull one credit report and can use it with multiple lenders. We do the shopping for you and that safeguards your credit scores.
Please remember that if you open a new bank account , cell phone account or apply for insurance that typically triggers a credit report.
If you are shopping for a home loan, try not to apply for any other credit during the same period.
Also, keep in mind that if you are applying to multiple sources for a home loan, the company that ends up giving you the loan is going to want an explanation letter of why you have applied for the other loans. This is no big deal, just a heads up so you aren't surprised by the request for an explanation letter.
That is a good question. I've heard different things on both sides and still do not know the absolute answer after being in the biz for 5 years. I hear every inquiry dings you, and I have also heard there is a 30 day window for consumers to shop for mortgages, as long as its only mortgage people inquiring. I still don't know, credit scoring is very complicated, alot of things go wrong people have false accounts, stolen identity, unknown accounts, etc. If your very borderline on getting a loan I would be concerned about it. However, if it's only going to ding your credit for a short perios of time and your credit is flawless, I wouldnt sweat the load at all- inquires are not the primary reasoning for bad credit- debt and missed payments are.
Therefore I think your fine and I also agree with mcbrown....I don't know why you need to shop so much or why the broker is sending your package out to multiple lenders. Everybody has the same products nowadays. Customer Service is what top originators across the country are providing- not products that nobody knows about (There arn't any in existence). Those days are long gone. I work at a bank and do not know one single broker that has acess to something I dont. Good luck with everything and Best wishes!
Yes each time your credit is pulled it will low your scores, once you have your scores state you want to "talk shop" with the lender NOT pull the credit scores. Credit inquiries can cost you approx 5 - 10 pts.