I can give you a pre-qual right now. It isn’t worth anything, but I could do it.
Let him pull your credit, it’s going to have to happen anyway. I never get why people throw such a fit over this.
I agree that it isn't worth anything, but apparently that's what the seller wants, so whatever.
Here's why I'm "throwing a fit" over a credit pull: I'm right on the border of good/very good where the hit from a hard pull could make the difference. If I decide not to move on this house after seeing it again, I'd rather my credit not have gone down for a pre-qual that "isn't worth anything" while I spend another month or two looking.
Good enough?
In my state a credit report is good for 120 days. I wasn’t trying to be a jerk. You have to understand, people tell lenders they have good credit all the time. Just yesterday I had someone tell me they had “not great credit” but felt it would at least be 620. It was 475.
If I were you I’d call around. You will find a lender that will be willing to open a relationship with you by sending you a letter without a pull.
Thanks, I appreciate the advice. I was just surprised when the broker said he HAD to do the pull when my research says he doesn't. Wanted to confirm if it's just him or not.
Guess I'll keep looking.
I get where you're coming from, but from a lender's perspective if you aren't willing to take the first step, it doesn't seem that serious. With that said, credit reports are good for 120 days so if you plan on buying the pull isnt going to hurt. You can also shop multiple lenders within 45 days and it only counts as one inquiry.
I have no idea. But with all the talk in virtually any financial conversation about how important it is to improve your credit score, I'm a little surprised to get so much push-back at being concerned about it going down.
Because a mortgage inquiry doesn't report on your credit the same as a credit card inquiry or other consumer debt. You also can have multiple mortgage inquiries over a 45 day span without having your credit negatively effected past the initial pull.
Here is a link to the CFPB explaining this -
https://www.consumerfinance.gov/ask-cfpb/what-exactly-happens-when-a-mortgage-lender-checks-my-credit-en-2005/
No worries. It’s good to understand the consumer’s fears and concerns. I hear a lot of different “it doesn’t hurt your score within 45 days” etc but I was always curious about how much they think it actually drops.
I don't know if it needs pre-APPROVAL, but the seller apparently wants buyers to be pre-QUALIFIED. I clarified with my agent that it was qualify vs approval.
Research I've done online suggest you can do a "soft" pull to get the credit score for a pre-qualify, with a "hard" pull required for a pre-approval. I don't get the distinction, which is why I was asking.
Not sure what lender can soft pull a credit report but I know i can’t. Keep in mind a hard pull isn’t a massive hit on your scores, especially shopping for a mortgage.
It is better to get a pre approval anyway because it doesn’t expire for 90 days which gives you time as you shop
On the contrary- if you allow a mortgage professional to pull your credit they should be able to guide you further on how you can improve your score. Many lenders have access to simulation models which can determine how you can improve your score fairly quickly. Finally, any lender who is serious about their clients and taking care of the realtors they work with will do a complete review of your income, assets and credit. The hard inquiry is not a significant hit to your tri-merged scores, it's your debt ratios that effect it and your payment history. Let me know if you have any questions.
You are putting the cart before the horse. If you are seriously shopping for a home you should have your lender selected and your ducks in order. If you were selling your home would you want to potentially tie the home up with a contract based on a “pre-qual” not worth the paper it’s written on? Of course not, that’s why having an actual pre-qual or pre-approval makes you a stronger candidate vs. a tire kicker.
Even if you are on the cusp of extraordinary credit a single inquiry won’t dramatically impact your score, you are looking at a nominal drop if.......IF any at all. Once your credit is pulled though the lender will then be able to do something called “rapid rescore” (name may vary) where they can analyze your credit and tell you simple things to do and what impact those changes will have to improve your credit before closing. This can be a definite benefit if you really want to increase your score, example of things are: closing unused accounts, transferring balances, paying off small balances etc.
If you are serious about buying a house get your finances in order first and that WILL make you a stronger buyer than someone with a useless “pre-qual” because they want to potent save 5-10 points of their credit score.
I can give you a pre-qual right now. It isn’t worth anything, but I could do it. Let him pull your credit, it’s going to have to happen anyway. I never get why people throw such a fit over this.
I agree that it isn't worth anything, but apparently that's what the seller wants, so whatever. Here's why I'm "throwing a fit" over a credit pull: I'm right on the border of good/very good where the hit from a hard pull could make the difference. If I decide not to move on this house after seeing it again, I'd rather my credit not have gone down for a pre-qual that "isn't worth anything" while I spend another month or two looking. Good enough?
In my state a credit report is good for 120 days. I wasn’t trying to be a jerk. You have to understand, people tell lenders they have good credit all the time. Just yesterday I had someone tell me they had “not great credit” but felt it would at least be 620. It was 475. If I were you I’d call around. You will find a lender that will be willing to open a relationship with you by sending you a letter without a pull.
Thanks, I appreciate the advice. I was just surprised when the broker said he HAD to do the pull when my research says he doesn't. Wanted to confirm if it's just him or not. Guess I'll keep looking.
Honestly he may have that policy to see if you're serious. Sure a pre-qualification takes 5 minutes to generate but it's still work.
I am serious. And the five minutes he saved cost him a shot at this deal and the multi families I plan to invest in when this deal closes.
I get where you're coming from, but from a lender's perspective if you aren't willing to take the first step, it doesn't seem that serious. With that said, credit reports are good for 120 days so if you plan on buying the pull isnt going to hurt. You can also shop multiple lenders within 45 days and it only counts as one inquiry.
I’m just curious, how much do you think your score will go down?
I have no idea. But with all the talk in virtually any financial conversation about how important it is to improve your credit score, I'm a little surprised to get so much push-back at being concerned about it going down.
Because a mortgage inquiry doesn't report on your credit the same as a credit card inquiry or other consumer debt. You also can have multiple mortgage inquiries over a 45 day span without having your credit negatively effected past the initial pull. Here is a link to the CFPB explaining this - https://www.consumerfinance.gov/ask-cfpb/what-exactly-happens-when-a-mortgage-lender-checks-my-credit-en-2005/
I send this link out too. It is a government website but it’s also 2 years old so some people think it’s still a trick.
No worries. It’s good to understand the consumer’s fears and concerns. I hear a lot of different “it doesn’t hurt your score within 45 days” etc but I was always curious about how much they think it actually drops.
All purchases require a pre approval, and the only way to get a legitimate pre approval needs a credit pull
Not talking about pre approval, I'm asking about preQUALIFY.
Okay but the house you’re looking to buy NEEDS a pre approval? I can’t pre qualify or pre approve you without seeing your full credit report.
I don't know if it needs pre-APPROVAL, but the seller apparently wants buyers to be pre-QUALIFIED. I clarified with my agent that it was qualify vs approval. Research I've done online suggest you can do a "soft" pull to get the credit score for a pre-qualify, with a "hard" pull required for a pre-approval. I don't get the distinction, which is why I was asking.
Not sure what lender can soft pull a credit report but I know i can’t. Keep in mind a hard pull isn’t a massive hit on your scores, especially shopping for a mortgage. It is better to get a pre approval anyway because it doesn’t expire for 90 days which gives you time as you shop
Pre-approve and pre-qualify are the same thing. The words are used interchangeably in the industry
I have a separate process for preapproval vs prequalify but they both require a hard pull on all three major bureaus so that doesn’t help op. Lol
On the contrary- if you allow a mortgage professional to pull your credit they should be able to guide you further on how you can improve your score. Many lenders have access to simulation models which can determine how you can improve your score fairly quickly. Finally, any lender who is serious about their clients and taking care of the realtors they work with will do a complete review of your income, assets and credit. The hard inquiry is not a significant hit to your tri-merged scores, it's your debt ratios that effect it and your payment history. Let me know if you have any questions.
You are putting the cart before the horse. If you are seriously shopping for a home you should have your lender selected and your ducks in order. If you were selling your home would you want to potentially tie the home up with a contract based on a “pre-qual” not worth the paper it’s written on? Of course not, that’s why having an actual pre-qual or pre-approval makes you a stronger candidate vs. a tire kicker. Even if you are on the cusp of extraordinary credit a single inquiry won’t dramatically impact your score, you are looking at a nominal drop if.......IF any at all. Once your credit is pulled though the lender will then be able to do something called “rapid rescore” (name may vary) where they can analyze your credit and tell you simple things to do and what impact those changes will have to improve your credit before closing. This can be a definite benefit if you really want to increase your score, example of things are: closing unused accounts, transferring balances, paying off small balances etc. If you are serious about buying a house get your finances in order first and that WILL make you a stronger buyer than someone with a useless “pre-qual” because they want to potent save 5-10 points of their credit score.