The "Open Mike" Blog

Buyer Question:

June 11, 2009 · Leave a Comment

Will is hurt my credit if I get pre-approved for a mortgage loan from multiple lenders?

A lot of people think shopping around for the best rate will hurt their credit. That used to be the case until a few years ago. The answer is no, it won’t hurt your credit as long as you do it in a small time frame and for the same type of loan, meaning all home loans or all car loans.

Under today’s strict mortgage guidelines, in a lot of cases a lender cannot even quote a firm interest rate unless they have your credit report and all 3 scores, since most rates today (FHA excluded) are tiered based on your score, therefore two separate borrowers one with a 739 credit score and one with a 740 may pay different rates.

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