When you apply for a mortgage, you must have your credit checked. It is the only way a mortgage company can really determine whether you can qualify for financing and what your rates and fees will look like.
If you are applying for multiple forms of credit at the same time, such as a credit card, a mortgage and an auto loan, such actions will negatively impact your credit score.
Each of these applications will generate a hard inquiry on your credit report, which could send a signal to lenders that you are having difficulty managing credit.
But you can avoid extra damage to your credit score if you apply for one form of credit at a time, and limit the time between each credit inquiry.
That’s because most credit scoring models group credit inquiries for the same type of financing (mortgage, credit cards or lines of credit) that are made within a specific timeframe to allow people to comparison-shop for competitive rates.
It can vary from model to model, but, in most cases, all inquiries of one of those types will be counted as one, provided they take place within a 14- to 45-day period.
A single inquiry is likely to drop your score by less than five points.
As an industry, mortgage brokers use a single secure system and can send that ONE credit report to multiple lenders if needed. That five-point effect on your credit will rebound within a month.
This allows for one-stop shopping with minimal impact on your credit score.
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Here are 5 proven ways to move safely and smartly towards your real estate buying goal...
- Download a free copy of my Ultimate Home Buyer’s Guide book
- Get a custom listings search set up for you and receive targeted listings daily
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- Set up a step-by-step plan with the best ways to get to your home buying goal
Our first-time and move-up buyers have told us that being able to meet with us on a casual basis as early in the process as possible, even if their purchase date was 6-12 months away, really worked the best for them.
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- Join us for a Market Experience Tour - pick your favourite neighbourhoods and price range
The Market Experience Tour is a great way for you to figure out which neighbourhoods and condo buildings are right for you, and you’ll also get a good sense of what’s available in your price range.
Pick the date and time you like to go on your Tour.
- Don’t start your home buying experience on the wrong foot - Meet for a Buyer Consultation first!!
Don’t make the same mistake. Let’s set a time to meet and go over how the complete home buying process works, find out what your likes and dislikes are and what pitfalls you’ll want to avoid, before you seriously start looking for a house or condominium.
This is the best 90 minutes of time you’ll ever spend - set up your private Buyer Consultation.