It is in your best interest to be a good consumer and compare lenders and mortgage brokers products and interest rates when thinking about a home purchase. Many of my buyers are fearful to have their credit pulled too many times.
Too many credit inquiries can negatively affect your credit score, but you can control the damage. And, credit inquires make up a relatively small part of your credit score.
This topic and more information can be found in my October Newsletter.
The article in my newsletter written by Dian Hymer addresses these concerns.
"For example, the FICO credit score from Fair Isaac Corp. that is widely used by mortgage companies for qualifying borrowers uses five types of information to calculate a credit score. Each type counts as a percentage of the total credit score. They are: payment history (35 percent); amounts owed (30 percent); length of credit history (15 percent); new credit (10 percent); and types of credit in use (10 percent). Credit inquiries fall into the "new credit" category, which accounts for less than 10 percent of your credit score.
Only voluntary inquiries are taken into account, such as the inquiries made at your request when you shop loan rates. Loan agents usually need to know your credit score before they can quote you an interest rate."
The FICO credit-scoring model ignores all mortgage inquiries made within the last 30 days, so they will have no impact on your credit score, "
Please feel free to contact me for more information and to sign up for my Newsletters.
Comments(1)