Does applying for preapproval for a mortgage lower your credit rating? What about repeating the proc

It doesn%26#039;t automatically lower your credit but it will appear as a inquiry on your account. You do not want to many of these. However when you are in the process of buying a house you are expected to shop around before choosing one morgage company, so lenders have come to expect it. I was advise not to have my credit run by more than 5 lenders in the process.

Does applying for preapproval for a mortgage lower your credit rating? What about repeating the process?

I believe each time someone runs a credit check it will lower your points a little.

Does applying for preapproval for a mortgage lower your credit rating? What about repeating the process?

Hello -

No applying for a pre-approval does not lower your credit rating. In fact, you have a 45 day window from the first date it was pulled and the credit bureaus will only count it once.

The reason that this is debated so often is the opposite is true if you were opening new credit card accounts. Each new account would count and therefore lower your score.

What that means is that if your in the process of trying to qualify for a home loan, you do not want to open any new credit accounts, including cell phones.

Please note that different brokers will have different companies they use to pull credit, and it is normal for your scores to vary.

The lender is not worried as much about the past as they are of your ability to repay the mortgage loan in the future. Basically, if you鈥檝e had credit problems in the past, the mortgage company will look at those problems and ask the following questions:

a.) How far in the past are your credit problems? (i.e.- if you had

multiple delinquencies on your credit card this year, you might

not be able to obtain a loan)

b.) If your credit problem is in the past, is it likely to recur again?c.) Is whatever it is that caused your credit problem gone, or is it

still present today?

d.) How good is the probability that you will pay your bills faithfully every month from now on?So, if you鈥檝e had bad credit, don鈥檛 let it keep you from applying for a loan. Even in the worst-case scenario, a good lender will never say no. That鈥檚 because, it鈥檚 not a question of IF you qualify for a home loan; it鈥檚 a matter of WHEN you can qualify. This is why you should apply, no matter what your credit situation.

Here is a link to a FREE REPORT - that will let you show you six secrets you should now when applying for a loan:

http://www.freemortgageinformationsouthe...

There also another website that will teach you everything you want to know about buying or selling a home.

http://www.freerealestatesecretssouthern...

Please let me know if you have any further questions.

Does applying for preapproval for a mortgage lower your credit rating? What about repeating the process?

if you shop for the mortgage every credit check in 35 days will count like one. they are inquires and they will stay on your report for 90 days, but it will not lover your credit score

Does applying for preapproval for a mortgage lower your credit rating? What about repeating the process?

But multiple inquiries can also result from applicants shopping for the best deal. Top avoid catching shoppers in their net, credit scorers ignore auto and mortgage inquiries that occur within 30 days of a score date. To avoid biasing the credit score from earlier shopping episodes, the scorers treat all auto and mortgage inquiries that occur within a 14-day period as a single inquiry.

Straight from Equifax%26#039;s website:

Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries for your credit score from auto or mortgage lenders within a short period of time. The FICO庐 score treats these as a single inquiry, which will have little or no impact on your credit score.

The FICO庐 score ignores all auto- or mortgage-related inquiries that occur within the 30-day period previous to an inquiry from an auto or mortgage lender (called the buffer period). And prior to that buffer period, the scoring software also notes when earlier inquiries were made, if any, and counts back 14 days from each one. The score then counts all auto- or mortgage-related inquires made within any 14-day period as just one inquiry.

For example: John Doe is shopping for a mortgage loan and a lender gets his credit report on November 30. John%26#039;s credit report also lists three other mortgage inquiries that were made earlier that month. The FICO庐 score ignores those previous mortgage inquiries because they all fell within the 30-day buffer period.

Now let us say that John also purchased a car three months before he began shopping for a mortgage loan. His car shopping resulted in three inquiries from different banks and credit unions over several days. Since they occurred within the same 14-day period, those three inquiries are counted as just one inquiry by the FICO庐 scoring model.

Straight from Transunion:

any mortgage or auto loan inquires within a 14 day period