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Mortgage Approvals and Credit Pulls

If I'm shopping for a mortgage at what point do they do a credit check?  I've read that having a credit check done for a mortgage approval puts a temporary hit on your credit rating.  I'm just trying to understand the sequence of events as I'm currently in the market but obviously want the best rate.  
  • May 09 2012 - Springfield
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Answers (2)

Hi TPG,

Yes credit pulls can and do have a negative impact on your credit score if done from different merchants at different times.   The best way to avoid this is to call 2 or 3 lenders that you would like to work with, have them all give you their best quote.   When you are ready to pull the trigger and move forward let your top picks know that it is okay to pull credit and have them all pull credit on the same day.   This will have the least impact on your credit score! 
Best of luck with your new home!  
  • May 09 2012
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To get an accurate estimate mortgage companies will do a thorough job and do the credit check up front.  The credit agencies tell us that as long as the inquiries are limited to an industry (mortgage) and they are within the same time period (within weeks) that the scores should all be the same with those mortgage lenders.  Now if your credit is pulled for credit card, car, credit union, & mortgage company, then your scores will drop.

That being said, I would limit yourseld to a few reputable mortgage companies and loan officers.  A great site to learn more about who you are speaking with is www nmlsconsumeraccess . org .  This site has all licensed & registered loan officer and companies.  All  you need is the nmls #.  Remember some loan officers are licensed while others are just registered.

Best of luck!  FYI, my nmls # is 146855 and I am licensed.
  • May 09 2012
  • 0Yes

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