Will the banks AND the broker both bring up a credit report? If you were dealing with several banks offers over a period of 3 months, wouldn’t that be extra inquiries on your report that could hurt you score?
Inquiries are moot. 80% of your score is determined by how you pay, how much you owe, and how long you’ve been paying carries the most weight.
Is it a mortgage brokers’ responsibility to get your credit report?
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Your credit report will not be pulled without you specifically authorizing in writing that you permit such. If you are shopping around for several banks and their terms, you are best to obtain copies of your credit report for yourself, and then use these at these banks as evidence of your financial capabilities and credit.
When you have selected a bank with which to deal, THEN they will pull your credit report as a means of verifying that what you provided is accurate, or reasonably close.
Do not authorize them to pull your credit report if you are just ‘shopping terms’.
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Is it the mortgage brokers responsibility to get your credit report. Each broker will have to pull their own. They can’t use another companies report for pre-approval purposes. It’s my understanding that shopping for a home loan should not affect your credit score. However, I have seen cases where the scores drop a few points over a short period of time when the report is continuously pulled by mortgage companies. It shouldn’t be enough to cause a drastic affect on your scores.
My advice would be to only have the companies that you are considering doing business with pull the report. Don’t let every company that gives you a rate quote check your credit.
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Mortgage Consultant for 10+ years
Don’t worry, when you are looking for a house, there is a period where it doesn’t matter how many "hits" you get on your credit, it will not affect your score. This is done so as not to affect your credit score when all you’re doing is shopping for a home. It was a relief to me also when I found this out.
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Feel free to shop for a mortgage with impunity! About 18 months ago federal legislation deemed that multiple ‘hits’ on a credit report for the purpose of shopping a home loan or auto loan would count as one ‘hit’ in any 14 day period, meaning that if you checked your ability to obtain a loan once a day from 15 different lenders, you would only have two "Hits".
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Yes. See, the law states that if your credit gets run more than once in a month, your credit would only get deducted as one run check. But three months can hurt your credit. I’ve checked credits and seen that my clients been getting his/her credit report pulled at 5 to 10 places that month while in that month their credit fell 3 points only.
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Inquiries are moot. 80% of your score is determined by how you pay, how much you owe, and how long you’ve been paying carries the most weight.
References :
http://www.denver-lender.com/2007/08/23/mortgage-primer-your-credit-score/