Shopping For Mortgage Can It Hurt You

Dated: 11/28/2014

Views: 1263


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.
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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....

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