For MISSISSIPPI: The Truth About Credit Inquiries

Mortgage and Lending with Guaranty Bank & Trust Co NMLS ID #68160

Don't ever let a loan originator or loan officer convince you that "shopping around" will negatively affect your credit scores.

This is typically a scare tactic that some loan originators use to retain your business -  possibly from finding a lower interest rate or better program elsewhere. Or, this could mean that this loan originator is unknowledgeable that the law had changed and just didn't know.  

The fact is you "should" shop around!  This is your right as a consumer and is covered by the FACT Act, which is regulated by the Federal Trade Commission.

Here is how it works:  Mortgage credit inquiries within a 14 day window only count as "1" inquiry.  And... credit inquiries only account for 10% of your total credit score. 

So what does this mean?  You can effectively shop with multiple lenders with little affect on your credit scores.  So be wary of a loan originator or loan officer who tells you this.  Let that be a BIG red flag!




Comments (2)

Thomas "Tommy" Morgan
Latter & Blum Hometown Realty ERA Powered Licensed in MS. - McComb, MS
Latter & Blum Hometown Realty ERA Powered
I wish the public were better educated about this.  I had the same trouble when I was in the car business; shoppers would refuse to let me run their credit, thinking it would greatly lower than score.  I think many of my customers didn't believe me when I told them about the 14-day window!
Aug 20, 2007 09:34 AM
Dave Sullivan
Real Estate One - Birmingham, MI
Michigan Realtor with an investor viewpoint

Well done not many in the industry know the correct answer.  I am not trying to premote anything but I did do a video on this and many in the industry have found it helpful you can view it at

Feb 05, 2012 03:48 AM