Shopping For Mortgage Can It Hurt You

Dated: 11/28/2014

Views: 1248

Your credit scores change constantly each month based on factors like:
  • Credit card balances relative to limits
  • Number of open accounts and length of time accounts have been open
  • On-time versus late payments
  • Number of inquiries                                                                                                                Credit card inquiries hit your score harder than car and mortgage inquiries. For example, if you’re out shopping at three department stores and allow all three stores to process new credit cards for you, the bureaus’ score each inquiry would lower your score by up to five points, or more if you have just a few accounts and/or a short credit history. Car and mortgage inquiries make less of an impact because the bureaus know consumers shop for these big-ticket items. The bureaus’ scoring models are coded to “de-duplicate” multiple mortgage inquiries, since the end result of those inquiries would be one mortgage. If you were shopping for a mortgage with three lenders, and all three ran your credit one week, the three inquiries would show on your report, but would be scored as only one, so your shopping process would cause your score to shift by up to five points not 15.
Blog author image

Carolann Newton

I was a domestic paralegal for 8 years prior to Real Estate. Since I have been in Real Estate I have grown to love this business, even though it does have it's challenges; it is very exciting. There i....

Latest Blog Posts

New Two Story Home Under Construction In Williamston

This lot is conveniently located near downtown Williamston and the home is to be constructed on this cul-de-sac lot. Affordability with three bedrooms, two bathrooms and 1,279 sq ft provide plenty

Read More

New Price For A New Home In Seneca

This lot is located in a very desirable subdivision and has many amenities for a life of enjoyment! The picture provided is a rendering of the craftsman model and is to be built on this lot. Will be

Read More

Starter Home

Great first time buyer home.103 Lynch Street$104,900 Single Family 3 Beds, 1 Baths, 1 Half Baths, 1,000 Sqr Ft, Pendleton Just Listed29670 - Affordable country living! 3 bedroom, 1

Read More

Lovely Country Setting

141 Mellrich Road$230,000 Single Family 4 Beds, 3 Baths, 3,410 Sqr Ft, IvaPrice Reduction29655 - Are you looking for a slower pace home in the country but, not to far from town ? Check

Read More