Tuesday, June 12, 2012

Does applying for a mortgage with more than one lender hurt your FICO score?

One of the reasons that clients give me for NOT getting preapproved by a lender is that they are afraid the inquiry will hurt their credit score.  (Why do you need a credit score in the first place...oh, never mind.)  Here's another article from the LA Times about this very issue. As you'll see, mortgage-related inquiries do not hurt your credit score. If you read nothing else, please read this quote, "The FICO models, Huynh said, ignore all mortgage-related inquiries during the 30 days immediately preceding the computation of the score. All mortgage inquiries during the 45 days preceding your loan application count only as a single inquiry. The same buffer zones cover shopping for auto loans and student loans — but no other forms of credit."  So please call your lenders, okay?

2 comments:

  1. Thanks for sharing the information. Houses for sale by owner are more common than ever but still.
    homes for sale grand rapids

    ReplyDelete
  2. Thanks for the info! It's always helpful to have little bits of info for people!

    ReplyDelete