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. Anonymous11:56 PM

    Thanks for sharing the information. Houses for sale by owner are more common than ever but still.
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    ReplyDelete
  2. Thanks for the info! It's always helpful to have little bits of info for people!

    ReplyDelete