Lots of conflicting answers so far - here's the accurate one: Until a few years ago, each time a creditor ran a client's credit report, the score declined by a few points. Fortunately the three credit bureaus changed this to now allow up to four credit inquiries in a 30 day period per type of inquiry (i.e. mortgage inquiries, installment loan inquiries, etc.). The credit scores will drop slightly based on the first inquiry, but will not change for inquiries 2 through 4 if you continue to shop. Any lender who tells you that each inquiry will continue to lower your score is probably trying to keep you from the competition. Just keep the shopping to a maximum of four inquiries in a 30 day period and you should be fine.
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Also, make sure when you are shopping that you are comparing apples to apples. Some lenders, even our local banks, will quote no points then charge a one point origination fee. (Which is just a point with a different name). In fact , you should get a good faith estimate before you commit to any lender.
Finally, make sure you are locked in at application for a period long enough to cover your closing date. Actually it is best to be locked in several days past your closing date on a purchase because there are so many things that can delay a closing.
I am the lady for whom the California bait-and-switch law was written about thirty years ago. I happened when the manager of a chain furniture store patted me on the head and said, "You don't understand busness, little girl." I called the AG, so he could explain business to me. Our legislature, which never does much, actually cleaned up the law here. The manager's company paid $4M for a course in bait and switch.
I am amazed at how often I run into this fraud. Even when I tell them who I am, they persist. So does the AG.
These days you want to be pre-approved by two lenders just in case one falls out at the last minute. Just make sure that you tell the second loan agent that you getting the loan approval as a backup. They'll understand that in the current market. Good luck.
Then I suggest providing the Good Faith Estimates to each lender you're considering working with, and asking for their comments. One lender can usually spot the strengths and weaknesses of another lender's proposed loans better than the rest of us!
Personally, I am a Realtor, not a lender, but I respect my clients loan needs enough that I try to attend their initial loan appointments. Being there together helps because the borrowers can ask me related real estate questions - and it helps me, too, because I have a better idea what they can afford and how to structure their offer to match their loan. We can also talk about which lenders they like, and why, to help them find the most trustworthy lender to meet their mortgage requirements, and get them into the home they really want.
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Good luck on buying your first home! I hope you find it to be a great experience for you, and the beginning of building lots of wealth!
It sounds as if you are on top of things. Congratulations!!!
This is a follow up my previous question regard of 95124; I prefer house in 95124 only and under 500k; I lost from last bid on short sale; and another lost from reo sale; someone bid price over the opening house price..
Do not let the lenders continue to run credit reports on you as it will reduce your FICO score as they look at the amount if inquiries within a 90 day period.
When you are shopping for lenders it is helpful to work by referrals from family, friends or even your Realtor. You want someone who will deliver and not just thow the numbers you want to hear to get your business.
We are talking about your FICO score.
That was your question.
Don't give authorization to anyone else to run your credit. You are done! Put a fork in you. DON"T do it again!
Move forward with what you have. Your score is what it is. Work with it. DON"T run your report again.
You are only going to make things worse.
If I was you, I would call my realtor and friends and ask them for a lender referral. Call that lender and let him pre-qualify you and give you a good faith estimate. He should tell you your FICO scores at that point. Let him or her know that you are shopping at least 2 other companies. Call the other companies and give them all the details . This will allow you to shop with only one hit against you!
Hope this helps.
Inquiries DO lower your FICO score. If a credit report is run through the SAME credit reporting agency, your score will not be effected. Unfortunately, different lenders use different credit reporting agencies and it WILL result in an inquiry every time another agency is used.
If you are shopping loans, have your credit report transferred to the new lender wanting to run your credit or make sure they run the credit through the same agency as the company that ran your credit last.
DO NOT believe someont that tells you different.
Shop around with several lenders but do not let them check your credit. Have them base their quotes off of the scores that you give them. In other words, ask them "Based on my credit scores of 657, 701 and 743, what interest rate will you offer me?"
From 1991 to 1994 I was a mortgage broker myself. Mortgage brokers frequently do the "bait and swith" technique.
Larger banks and lender loan officers can not do that.