This is a great question and a common one! Many potential home buyers are afraid to let a lender pull their credit report because they think it will drop their score. This is actually a very harmful MYTH and let me explain why.
Mortgage lenders use a scoring formula developed by Fair Isaac called FICO score. FICO ignores mortgage inquiries for the most recent 30 days prior to scoring! In fact, even when looking more than 30 days back all inquiries made for a mortgage within a 45 day window are only counted as one inquiry. This means that having your credit checked out for a mortgage is not harmful to your score immediately and have little to no long term impact.
This is important because when home buyers wait until they find a house to have their credit pulled, there are often surprises that hurt their chances of obtaining a loan or getting the best rate.
I just met with a couple a few weeks ago that wanted to buy a new home in the Tega Cay area. They are very credit worthy but didn’t realize that there was an error on their credit report. By coming to me early we identified the problem and within a few weeks they were able to clear it up… before needing to lock in a rate or close on a loan!
If you are thinking about buying or refinancing the FIRST THING you should do is have a lender pull your credit! Most lenders will do this for free and you might save yourself a lot of time and money.
8600 Sam Furr Road, Ste 250
Huntersville, NC 28078