Will Rate & Mortgage Shopping negatively impact my Credit Score?
No, No, No & No!
I cannot stress this point enough, It's okay to shop around for a mortgage....
Scenario 1
- You're shopping for a mortgage. Your lender wants to "pull your credit" and you're worried that it will harm your FICO.
Scenario 2
- Under certain circumstances, your buyer's agent or the sellers agent may request or require as a condition of your offer that you obtain a pre-approval from their preferred lender in addition to your lender of choice. Again you're worried that it will harm your FICO.
While 30 years ago, that concern was valid. Today, it's not.
The credit bureaus say it plainly -- your credit scores won't drop when a lender pulls your credit.
This request is usually made to serve as a back up in the event that your lender cannot deliver a commitment. As each lender has their own underwriting criteria, there are instances where having the back up lender has saved not only valuable time, but the actual deal.
Courtesy of Dan Green (NMLS #227607) an active loan officer with Waterstone Mortgage.
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