How to Shop for a Mortgage Without Getting Hit for Multiple Credit Inquiries

pexels-photo-1586525This is my best tip for shopping 30 or more mortgage lenders with only one inquiry and one phone call.

A big concern people have when they’re getting pre-approved for a home loan is, “How do I shop for the best rate without having multiple inquiries on my credit report?”

What the Big 3 Credit Reporting Agencies (Credit Bureaus) Say

Experian says consumers have 15 days to shop for a mortgage without having their credit score penalized.

Equifax and TransUnion say consumers have 45 days.

If this is true, why have some people seen their scores drop when their credit is pulled twice or more during that window?

According to National Credit Care, the window shopping idea is all nonsense. They say that they do see people’s scores go down, and that it is because lenders use the Classic 04 model, not NexGen that was created in 1997 and nobody uses.

Why Having Lots of Inquiries is Bad

  • If you have a borderline credit score, you don’t want to risk seeing your score drop.
  • If you have credit challenges and an underwriter sees that you have applied with six other lenders, the underwriter thinks, “None of my colleagues at other companies are approving this loan; why should I be the sucker who approves it?”

Best Tip for Rate Shopping Without Taking a Credit “Hit”WA First Awards 2018

A mortgage broker can shop 30 or more lenders (wholesale!) with only one credit pull. Not only do you avoid multiple inquiries, but you get to have a professional who knows all the underwriters do the shopping for you. It’s like having a free personal shopper!

Additionally, why walk into a retail bank or lender office when your mortgage broker can go to those same lenders on the wholesale side?!

There is no downside to using a state-licensed mortgage broker who has a legal fiduciary responsibility to get you the best loan at the best price they have available. (Banks and direct lenders don’t have that requirement.)

I am state licensed in CA and WA, NMLS #1284134. I’ve been doing loans for 20 years and have been on both the retail and whole side of the business. If you’d like me to help you get pre-approved, you are most welcome to apply here. Or, send me a message here.

 

 

2 responses

  1. OMG!!!!! I took the paper for her to sign… you email me …she didn’t  sign ,  she said could only  use  companys  letter head  ..she didn’t use the letter head intention  to remove deletion..went inside  her office may 1st…her clerks try to make me sign  some paper work ,copy  driver licence..Told them no you can look and see my photo  I.D…I’ll waited for manager . I snapshot money orders…manager turn red in face I wrote pay in full  as agreed….guess what all my hard work  paid off….. I forgot to get her to stamp her company  name of money order… once over she had her receptionist  to give me receipt  stated pay in full ,delete off trans union…may 3 2019 my credit  monitor  showed Item removed from file..total  mount 660.00$$  as if never happen..same amount  as money order 660 $$ ..company Clark  county  collections…now another collection  called on a debt from 2008 ,   I received  letter  may 3rd of 2019 from debt  2008 .. nothing mention of this in the letter that’s  what the collector  said first phone call ..thats a zombie debt ..I don’t know what going on.,not reported on credit bureaus  yet..I have 30 days to respond..radius global solutions LLC. From Minneapolis MN..said applied bank original  creditor $322.52 ..nothing  on my credit files…2008 this is crazy….maybe  they will take me to to court Minneapolis, can’t  make it ..I have a no show..I’m in vegas.  Sorry  for long letter..ty you soo much…my fico is 690 720 752. Pray for me…ty,

    1. First, congratulations on your success in getting the $660 collection removed from your credit report! Well done!!!

      As for a debt that is more than 10 years old, that is too old to collect on or to report to the credit bureaus. There are bad companies that buy old debt hoping to squeeze some money out of them. They pay less than one penny on the dollar. You can ignore them. If you hang up without saying a word, they will file it under “no response” and give up.

      Don’t worry about being sued in MN. A lawsuit must be in a court that is local to the person being sued. They would have to sue you in your own state, and I doubt they’re going to fly out for a small amount that has expired!

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