Mortgage Preapproval Impacts on Credit Score

Mortgage Preapproval Impacts on Credit ScoreFind out how one too many credit checks for preapprovals can hurt your score.

Luckily, you’ve got a mortgage preapproval letter in hand and a down payment stewing in your bank account! Getting preapproval could put your credit score in a precarious position.

This is due to the fact that getting a preapproval requires a “hard pull” on your credit. Too many of these can impact your ability to score the best loan terms once you’re officially able to move forward with a mortgage.

Use these tips to prevent (and correct) any negative impacts on your credit.

Preapproval should follow prequalification.
Simply put, get prequalified first as this requires no hard pull on your credit and it’ll give your lender a better look at your overall financial picture. Once you understand what you are most likely to qualify for, you’re ready to start looking at houses and more forward with the preapproval process!

Credit report longevity.
Note that credit reports are good for 120 days after they’re pulled. If a buyer doesn’t close on a home within that period, the report must be pulled again. This, in turn, could have a significant impact on the interest rate and loan program that the buyer can qualify for.

Don’t discount the benefits of being prepared!
While you should always be mindful of your credit score (whether you’re planning to buy a home or not), it’s important to understand how beneficial preapproved and overall preparedness can be to your ability to land the home of your dreams!

Are you ready to start your home buying adventure? Contact Avis Lending, serving all of Irvine, California and Lahaina, Hawaii with West Coast mortgage needs and concerns! Our trusted professionals walk you through the processes so that you’re aware of your credit score impacts!

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