How does an inquiry affect my credit score for a mortgage

How does an inquiry affect my credit score for a mortgage. As a top Dallas Texas lender, I get this question all the time.  The fact is if you are shopping for a Dallas Texas mortgage, lenders have to pull your credit.  Let’s take a look at some basics.  What is an inquiry?  An Inquiry is the common term that is used to describe someone who is checking your credit status. Basically they’re inquiring about someone’s track record and payment history to creditors.

Many experts in the industry rate the inquiries down to a two part description. The two part description is usually labeled “hard pull” or “soft pull” inquiries.

Standard Inquiries are hard pulls and are requested by your creditors when you are applying for a loan, or extension of credit. You may be shopping for a car, boat, applying for a mortgage, applying to rent an apartment, leasing a tractor or construction equipment, buying/leasing furniture, or computer equipment etc. These loans are very important to you because you want the best deal knowing you can save thousands of dollars on interest by purchasing from a lender that gives you the best interest rate. The problem is the more you shop around the more potential risk you have of continually lowering your credit score. The scoring model has attempted to make changes so they don’t continually brutalize the savvy and thrifty shopper that is trying to get the best deal.  Normally, for a mortgage inquiry, your score will drop roughly 3 points for the first inquiry.  If a mortgage lender checks your scores as you shop around, the score should not be affected if the inquiry is made within the next 30 days by another mortgage company.

A Self pull Inquiry is a soft pull so when you yourself go online and/or write to the bureaus and request a copy of your credit report. You are entitled by law to a free copy of your credit report once each year. This credit report will not include published credit scores. Without the credit scores, it makes it extremely difficult for an average consumer to even make a successful ball park guess as to what their score(s) would be.

Does a self pull credit inquiry hurt your score?  The answer is no if you secure your credit report from a company such as Credit Karma  or Free AnnualCreditReport.com  but this score is likely to be somewhat lower than the mortgage company because the scoring model is different from creditor to creditor.  However, it does give you an overview of information on your report.

I use Credit Karma to monitor my credit report.  I get an email every month that shows me what is going on with my credit.  I would highly recommend this if you are planning for a home purchase so that you are prepared or can make changes that would help you improve your credit score and help you get the best rate.  Call me today if you need help with your mortgage planning.  (214) 945-1066.

Richard Woodward, NMLS 217454

Your Local, Direct, 5 Star Rated Mortgage Lender, Specialty Lending Manager

Office:  (214) 945-1066

 mortgageprosus.com/5-star-reviews

Service First Mortgage  NMLS 166487

6800 Weiskopf Ave #200, McKinney, TX 75070

Licensed by the Texas Department of Savings and Mortgage Lending (SML) Mortgage Banker Registration. Service First Mortgage is an Equal Housing Lender. This is not an offer of credit or commitment to lend. Loans are subject to buyer and property qualification. Rates and fees are subject to change without notice. The views expressed on this site are those of the individual author and do not necessarily reflect the positions, strategies or opinions of Service First Mortgage or its affiliates.