Mortgage Pre-Approval & Effect on Credit History & Credit Score

[Timur Abdullin]

Hello Everyone:

The Problem:

Please clarify the following in addition to providing an in-depth explanation and examples: Does requesting a pre-approval (PA) from a bank or a mortgage broker or a web site result in a guaranteed 1 hard-pull (HP) from some or all the credit bureaus?

Why I need to ask:

1) My two good friends, a couple, are buying a home. They requested and got a PA through a credit union. They were given the PA for 3 months, after which they would have to get another PA. Following receipt of the PA they told me that one of their credit scores (CS) had dropped. They got a HP.

2) I went to a small, local bank and asked them if I will get a HP. They said “yes”. HP yes.

3) Spoke to a mortgage broker next to verify. He said that the request for a PA would warrant only a soft pull (SP). I asked him to clarify, pressing him about an impact a PA would have on my CS. He said that the PA would have no effect on CS. No HP.

4) Then there is the website Credible.com. They claim that the PA is a SP. See their article here. No HP. https://www.credible.com/blog/mortgages/preapproval/

About me:

I have an excellent CS and am very protective of it. I use it to apply for CCs and now mortgage for my 1st investment MFH. By chasing only those PA requests which result in a SP I will ensure that my CS is as high as possible to guarantee I get the best possible terms in all future financial transactions. Please help.

[Clifford Paul]

If you have excellent credit don't worry about it.  Just had a pull done last week and my credit score actually went up a point. Once the loan closes usually drops 10 to 20 points but recovers within 2 months.