Does A Mortgage Credit Check Affect My Credit Score?
Mortgage credit checks are reported as an “inquiry”
Inquiries just tell the credit reporting agencies that you’re thinking of getting more debt. An inquiry typically has a temporary very small negative impact to your score. The good news is that this will drop off your score eventually. The credit reporting agencies know that mortgages are a part of life, so they don’t penalize you much for trying to get one. Plus, inquires are a necessary part of getting a mortgage and quite unavoidable. Though, always try to be smart with your credit–applying for credit cards, car loans, or other types of loans can lower your credit score (called a FICO score, officially) so make sure you’re really looking to commit to that new loan.
Multiple mortgage inquires don’t affect your score
Here’s the good news: within 45 days, new mortgage credit checks all count as a single pull to your score. Since the creditors know you’re only going to buy one house, they only count the first pull against your score. This is great news since you can shop around and find a broker you trust and negotiate with them openly. Your score will be impacted the exact same no matter how many brokers you go to for a mortgage with 45 days. Just note this is only for mortgage credit checks. Credit Cards and other types of loans will still hit your score within the 45 day window.
How can I check my credit for free?
Here’s another one that won’t affect your score: pulling your own yearly credit report. It’s a great idea to keep an eye on your credit. Changes happen, people make mistakes filing bills and payments, so be vigilant about your score. Your can pull your score for free once per year at www.annualcreditreport.com .