This 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”
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.