Home Buying in New Albany>Question Details

James R. Bre…, Other/Just Looking in 47150

does the number of inquiries on your credit report affect your ability to borrow?

Asked by James R. Breslin, 47150 Wed Nov 18, 2009

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Tony Grech’s answer
It could.

If your credit is otherwise good - meaning you don't have a ton of debt or tradelines, you're not maxed out on your credit cards, and you make all your payments on time - then I wouldn't worry too much.

Likewise, if you have several inquiries but they were all within the same time frame and they were just mortgage inquiries, then the impact on your credit scores should be negligible.

But if you are running all around town opening up credit cards, buying cars, and looking to get a home, then YES this can affect your ability to borrow.

2 years ago, a 680 credit score or above was considered "excellent" however in today's lending environment that may be barely enough to qualify for a mortgage. These days it probably takes a 740 or higher to qualify for the best terms.

Hopefully this answers your basic question, but if you're looking for a little bit of advice, I wouldn't worry too much about the number of inquires hurting you. Focus on doing the things you can do to give yourself a great credit score - manage debt wisely and pay your bills on time. If you do that you should have no problem.

Tony
0 votes Thank Flag Link Wed Nov 18, 2009
Yes, it does effect your credit report. However, when it comes to getting a home loan you have a 30 day period to have your credit run by different lender (to shop around) without it hurting your credit. Verify this with your lender but this is my experience in the past 5 years.

When you choose a lender make sure they are a direct lender. A direct lender lends their money, a broker charges you to shop around to direct lenders. When you go with a direct lender the fees are less. I hope this helps,...God Bless.

Derek De Ville
Century 21 Rose Realty
#1 Realtor for the #1 Century 21 in the High Desert
0 votes Thank Flag Link Wed Nov 18, 2009
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