If you decide to keep your first house they may not pull your credit again. As a former underwriter when I saw this happen I would ask for proof that the other transaction was cancelled. You should have signed a cancellation agreement. Providing that form signed by buyer and seller should be sufficient with a letter of explanation. Regarding your credit scores...The credit bureaus realize that people shop for loans. If there are many inquiries within a short time frame, the credit reporting agencies indicate that these are counted as one on the scoring scale. Hope this helps. Good luck with the new house.

Toni

Did you have a deposit on the first home that is non-refundable? Do you feel that you would need to explain why there is a credit inquiry on your record?