Does A Mortgage Pre Approval Hurt My Credit Score?
Join the small handful of people who secure their Mortgage Pre Approval like an expert. Maintaining excellent credit throughout the process. It’s possible, but there are also common mistakes to avoid. Let’s explore.
What Happens To My Credit During The Process?
Let’s start with a quick lesson. Your credit report is made up by your FICO (Fair Isaac Corporation) score. FICO scores are based on credit reports and scores range from 300 to 900. Lenders use the scores to gauge a potential borrower’s creditworthiness.
We will need to check this at the time you make an effort towards securing a Mortgage Pre Approval. How borrowers go about this can make the difference between maintaining your credit and possibly hurting your credit.
Three Approaches To Mortgage Pre Approval
There is a common misconception out there. All checks on your credit score will negatively affect your score. This just isn’t true. Your credit was made to be used responsibly and part of that is to do just that…use it! Every once in a while you will need to borrow and having a healthy approach will be beneficial to your credit’s overall health.
Here are the three approaches I have encountered and the results:
1. Too many hits on your credit report
Some borrowers have talked to all of the big banks, three brokers, and then they come to me and ask me to get them a better Mortgage Pre Approval.
What they don’t understand is that these are hard hits on their credit report. The affect typically begins after three inquiries. Now when they actually look to complete their purchase their credit may disqualify them.
2. No hits at all on your credit report
Some borrowers have become scared by the common held myth that every hit on their credit will cause their score to drop. They want to get a Mortgage Pre Approval however the second you speak about their credit there is a hard stop.
What they don’t understand is that without looking at their report, from the industry side, their Mortgage Pre Approval will be incomplete. To proceed with purchasing a home without your full picture is misleading and potentially dangerous. Even if you have a copy of your credit report from Equifax or Transunion, you are only seeing the consumer report and this is a partial report.
3. Just one hit on your credit report
Here comes the shameless plug! Find a Mortgage Broker who completes a Full Review Mortgage Pre Approval. It will be the only one you need. With your industry report in hand and a full review, I will be able to speak to all of your lending options and get you fully pre-underwritten before you ever make an offer on a single home.
The result is a getting your Mortgage Pre Approval, your home in a shorter amount of time, and maintaining good credit along the way. Smile!
Find out more about all the things you need to know about your Mortgage Pre Approval.
Good Credit After Mortgage Pre Approval
So what’s at stake when it comes to approaching this process? You can end up with a house and bruised credit, good credit and no house, or you can have your cake and eat it too!
With a Full Review Mortgage Pre Approval you will maintain a strong credit score. Why not give us a call and find out more about us. Do it today.