How do I shop for a mortgage without multipe credit score hits?

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How do I shop for a mortgage without multipe credit score hits?

Russell R.
Mt Kisco, NY · Member since 2015 · 22 posts · 6 votes

Hi everyone

Am curious to know how I can explore different mortgage products/providers without having multiple hits to my credit score/report.

Every time I connect with a bank, etc. they want to run their own credit, and I believe that every time this is run there is a hit to my credit score.

Thanks for any advice on this.

Russell

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y

Credit pulls from mortgage lenders within 30 days of each other are grouped together as if they were just pulled one time for scoring purposes.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    Credit pulls from mortgage lenders within 30 days of each other are grouped together as if they were just pulled one time for scoring purposes.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    8Reply
  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    7y

    @Russell R. just confirming the post above.  All of those inquiries within that period of time add up to 1 inquiry after the period of time.  So if you have your credit ran 1,000 times....then they only count as 1 hit.  This rule does not apply to credit cards and other things but to mortgages you can shop and your credit will be ok.  I would still encourage you to interview the bank first before committing to credit.  If the lender can provide you with good information without running your credit it might show that they are easier to work with.  Just an idea.  Good luck!

    1Reply
  • Melvin ListBusiness Member
    Lender · Tampa, FL · Member since 2016 · 1k+ posts · 381 votes
    7y

    @Russell R. you also might want to try a broker.  They can take the one report they pull and transfer it to many different lenders without taking another hit as an inquiry

    C2 Financial
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  • Matthew Roder
    Lender · Chicago, IL · Member since 2015 · 67 posts · 43 votes
    7y
    @Russell R. What @Russell Brazil said is correct, and I also agree with @Melvin List, call a broker.
    0Reply
  • Account Closed
    Rental Property Investor · Chicago, IL · Member since 2018 · 16 posts · 1 vote
    7y
    @Russell R. Is this a residential loan or commercial? If commercial, there's no reason you should have your credit pulled until you sign up the loan. (It's always good to know what your credit score is to be able to provide to lenders). Like mentioned previously, brokers can shop your deal without needing to get your credit pulled for each lender. Feel free to reach out to me with any questions. Good luck!
    1Reply
  • David Taylor
    Lender · Irvine, CA · Member since 2013 · 22 posts · 2 votes
    7y

    Great little info article from the CFPB

    https://goo.gl/mo3dn4

    0Reply
  • Frank S.
    Specialist · Chicago, IL · Member since 2015 · 870 posts · 345 votes
    7y
    Originally posted by @Russell R.:

    Hi everyone

    Am curious to know how I can explore different mortgage products/providers without having multiple hits to my credit score/report.

    Every time I connect with a bank, etc. they want to run their own credit, and I believe that every time this is run there is a hit to my credit score.

    Thanks for any advice on this.

    Russell

    Hi, 

    I recently finalized this process. In fact,  the wire transfer arrived today. 

     I pulled 5 CPs, got the best rate,  and some discounts. I'm not sure if it was totally worth it, honestly.  I think 3 is probably ok.

    My credit was north of 800s and no issues getting the best loan. It required tons of paperwork this time around,  however. 

    A hardpull, of any kind,  may drop 4 points, it depends.  Multiple pulls won't apply if you get the mortgage.  It doesn't really matter if you are over their 740 requirement.

    The lenders won't give you anything without a hard pull, and many won't give you a rate lock if you don't order the appraisal and give them your credit card.  This makes it a little hard to get them to compete. You need to push back.

    I picked a bunch from large banks,  creative lenders,  chartered ones,  and online companies.  The large bank gave me a rate lock, I passed this document around and asked the others to bid lower fees,  rates,  etc.  Then,  I went back to the bank,  they also matched.  I kept track of their info through a google doc spreadsheet.  

    Many don't disclose their origination fees and typical title fees,  I rejected those lenders from the start. Others will give you half baked information. If a lender is not transparent with their fees,  don't waste your time. 

    Some didn't like this approach,  but I was honest and clear from the start. I told them exactly what I  was going to do. Others respected that. 

    One online lender was over $3,000 in fees from my lowest one.  They dropped their fees to match the others.  So, it's worth it to some degree, but it's a lot of work. 

    Good luck, 

    Frank

    2Reply
  • Russell R.
    OP
    Mt Kisco, NY · Member since 2015 · 22 posts · 6 votes
    7y
    @Phil Marmorstein thank you
    0Reply
  • Russell R.
    OP
    Mt Kisco, NY · Member since 2015 · 22 posts · 6 votes
    7y
    @Frank Sanchez thank you Frank
    0Reply
  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    7y

    Stay with the same Mortgage broker who represents all lenders. Unless one's credit is very marginal the impact on FICO is not even measurable.

    0Reply
  • Roxanne Sternod
    Member since 2019 · 2 posts · 0 votes
    7y

    @Russell Brazil..is this true for Washington state as well?? Thanks

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y
    Originally posted by @Roxanne Sternod:

    @Russell Brazil..is this true for Washington state as well?? Thanks

     Yes

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
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    0Reply
  • Roxanne Sternod
    Member since 2019 · 2 posts · 0 votes
    7y

    @Russell Brazil ..thank you

    0Reply
  • Bj Ayoleke
    New York, NY · Member since 2015 · 21 posts · 8 votes
    7y

    Couldn't you print out a credit report with your score on it, provide it to different banks. Get some answers on what if scenarios and whichever feels good with you, you can just apply?

    I always thought something like that would work, because that what i planned to do when ready to move forward with finding loans

    0Reply
  • Stephanie MedellinBusiness Member
    Mortgage Broker · CA · Member since 2014 · 1k+ posts · 642 votes
    7y

    @Bj Ayoleke  Yes you can absolutely provide a credit report to get a quote and a general idea of what you can qualify for.  That would be very helpful.  This is great for shopping, but to issue a solid pre-approval, lenders need to pull your credit report to run your loan through automated underwriting.  Without their own credit report, this isn't possible.  Just for shopping and comparison purposes though, just knowing your accurate, middle credit score (not from credit karma or other online provider) is enough to get a quote.

    [email protected]
    Stephanie Medellin, Loan Factory58 Reviews
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