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Old 09-29-2013, 10:24 PM
 
580 posts, read 1,252,754 times
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I am planning to purchase a home shortly.

I am wondering if I can shop/apply for the mortgage, would it affect my credit rating and hence the interest rate.



Please advice.

Thanks
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Old 09-29-2013, 10:47 PM
 
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Yeah your score will drop a bit but that's normal. I think every credit pull drops a few points. Shouldn't be too much.
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Old 09-30-2013, 07:24 AM
 
Location: Mount Laurel
4,146 posts, read 8,427,283 times
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Mortgage credit pull will not affect you much. What usually changes the scores (up or down) is opening of new credit.
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Old 09-30-2013, 01:36 PM
 
Location: New York
2,251 posts, read 4,173,039 times
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.

Shopping for a mortgage you need to protect yourself.

Every time your credit is ran there is a hard pull being reported and it appears your are changing your financial situation. Your report being ran multiple times will have an impact on your credit score. When there were more than three hard pulls in one week have seen credit score's taking a "nose drive"...

Research different lenders about the loans they offer. Then choose a lender that matches your situation as to how much you are putting upfront for the down payment.

Contact one lender saying before giving your personal information, request a copy of your tri-merge to be emailed to you. Under the Fair Credit Reporting Act, you have the right to receive a copy of your credit report. Meaning if someone runs your report by law they have to forward you a copy. If they make up some excuse why they cannot release your report, quickly say you will get back to them.

Once you have your own copy - print, black-out your SS#, and rescan. Then you can go shopping by forwarding your report to other lenders without impacting your score. When I was an L/O saw many shoppers do this way.

Another point you may be unaware of is ordering your own appraisal. You having the reassignment rights keeps the lender honest. If the lender orders the appraisal, they retain the assignment rights. You need to find out before hand who the lenders "approved" appraisal company.

The reason why I am say this - have heard countless of horror stories getting to closing all the numbers change. If the numbers do change and you don't like them. Since you have control to have it reassigned, you can say no thank you and go to another lender.

Good Luck

..

Last edited by Modification Specialist; 09-30-2013 at 02:01 PM..
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Old 09-30-2013, 02:48 PM
 
Location: Mount Laurel
4,146 posts, read 8,427,283 times
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Quote:
Every time your credit is ran there is a hard pull being reported and it appears your are changing your financial situation. Your report being ran multiple times will have an impact on your credit score. When there were more than three hard pulls in one week have seen credit score's taking a "nose drive"...
Are you sure about that? Multiples credit pull done in a short period of time are supposed to be counted as a single pull if it was coded correctly. Say you do some mortgage shopping over the next few days, you should not get ding with multiples hard pull if you apply for mortgage at 3 different institution.
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Old 10-01-2013, 08:05 AM
 
3,313 posts, read 4,109,575 times
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Quote:
Originally Posted by sj08054 View Post
Are you sure about that? Multiples credit pull done in a short period of time are supposed to be counted as a single pull if it was coded correctly. Say you do some mortgage shopping over the next few days, you should not get ding with multiples hard pull if you apply for mortgage at 3 different institution.
If you close within certain time, your credit score will remain the same meaning it will not affect you immediately, but if you just shopped around and 3 different lenders pulled your report, you will see 3 hard inquires.
"The FICO score ignores all mortgage and auto inquiries made in the 30 days before scoring. If you find a loan within 30 days, the inquiries won't affect your score while you're rate shopping" The Truth About Multiple Credit Inquiries
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