The entire concept of having a score lowered for just inquiring about items to purchase or trying to find different credit cards, etc. is horribly flawed!!! What if I looked at ten cars before deciding to buy? Yeah, its not wise to give your social security number but many times they have to take it and pull you just to see what type of financing they can offer. If you dont like the terms and go elsewhere, why should you be penalized? They know by the end results that you didnt buy ten cars. Its just another way to KEEP SCORES DOWN for the benefit of the lenders, who raise rates as scores lower. This used to be a huge part of the sub-prime world when it happened en masse and millions of people were ripped of with high rates they didnt deserve. Its harder no for that to happen and usually results in a flat rejection for a mortgage instead of an increased rate.
Have one lender pull your full report with all scores. Ask for a copy. If you shop anywhere else, tell them they must use that or use nothing. Some wil tell you that to be truely, fully approved they must run you through the underwriting computer systems and that uses a new pull to grade you. Unfortunately this is true, and another way the score company, Issac Fair (FICO) makes money off every living person in the country.
The above link is to the 100% accurate information about multiple inquiries from the company who developed the FICO Score that all of us lenders use.
Let me know if I can answer any follow up questions.
(214) 763-4629 cell/text/nights/weekends
Lending all across the Great State of Texas!!
Hope your Memorial Day Holiday is special, safe, and fun. Getting pre-approved won't be a ding on you credit as long as you don't shop around to a lot of mortgage companies (say more than 5) in a 3-4 week period. If you would contact me I am a realtor and can help you with your home search and guidance through the processes to purchase a home. Getting the financing is just one of the steps. You need to be able to trust the people you are working with. You can email me... Kathleen Realtor1 @ gmail. com or call me as well. My number is available when you select the info by my photo.
Enjoy the holiday and remember those that served, Kathleen
I don't know what area of town you are looking to purchase, but I focus on the Northside (Houston Spring TheWoodlands), Cypress, Katy and Inner Loop.
Feel free to contact me or check out my HAR website.
The credit scoring system allows you to shop with 2 or 3 loan companies within a 30 day period , and it treats it like one inquiry , with a mortgage , car or student loan . Usually one hit for 3 to 5 points ( not much )
The same is not true when applying for several credit cards . Each Application will trigger a credit pull , and that could possibly reduce your score as 3 inquiries .
I will be happy to answer any more questions you may have , about Real Estate in Houston .
I can be reached @ 281-568-4537 . Days , evenings and weekends included .
or Email me firstname.lastname@example.org
Have a great day !
Les Lobo ... Your Realtor professional
In business for over 20 years !
Will go the extra mile to get the job done
Trend Setter Realty
In addition to what has been very well noted in the previous responses, make sure you get from competing lenders GOOD FAITH ESTIMATE and Loan Fees Worksheet, so that you can choose what best suits you. Additionally you want to ask lenders about their processing and underwriting process. Let me know if you have any questions.
Mortgage Banker &
Real Estate Broker
The effect is minimal. Credit Scores are very complex in how they are calculated. They take into account you are shopping for a mortgage and not a credit card. When you shop for a mortgage they do group all credit pulls from mortgage companies and count them as 1 in a given 30 day period.
Even with that being the case I would only have one company or individual pull your credit. Then make sure they tell you your credit scores. From there on if you want to shop around you can just give them your 3 scores and no credit pull is necessary unless you decide to proceed with that lender.
Good luck to you.
REALTOR | Mortgage Broker | Consultant
Keller Williams Realty | 360 Lending Group
if you are thinking of buying a home, I'd highly recommend that you approach more than one lender, as they vary in products offered; also you want someone with whom you are comfortable and you trust. Also, be sure they are the kind who return calls and emails within a reasonable amount of time.
I hope this helps. If you are looking for a GREAT agent, I am here to help! I also know of a good lender that can see if you qualify for tax credits. Good luck!
Total Real Estate Services
A pre-approval does hit your score minimally up front but you are allowed to shop lenders during a 30 day period up to 3 different companies with it only impacting the score once, from what I understand and have seen. They understand people have to give full socials in order to really get a quote and the same for buying any one type of loan - like a car etc.
It is wise to shop around and get very comfortable with the lender who will be your liason throughout the process. You need to have very good rapport and someone willing to explain everything to you and return you emails or phone calls in a timely fashion.
Good luck to you!