Does a mortgage pre-approval affect my credit score?
Will getting a mortgage pre-approval hurt my credit score?
When you apply for a mortgage pre-approval, your lender will collect all of your background information, this includes a credit report. This will show up as a hard inquiry on your credit history, and hard inquiries do affect your credit score. The good news is that the impact is temporary, and the review moves you one step closer to getting a new home.
In order to avoid having multiple hard inquiries on your credit report, it’s a good idea to shop around for lenders that meet your needs prior to applying for a pre-approval.
Are you ready to take the next step toward home ownership? Apply today and get your mortgage pre-approval and shop with confidence.
What does it mean to get pre-approved?
When you are giving a pre-approval for a mortgage, that means a mortgage lender thinks you can move forward on a mortgage application, and provides an idea of what you’re likely to get approved for.
This pre-approved status comes after your lender has gathered enough information about you to make a determination that you’re safe to lend money to and the amount that you will be able to receive. There are many documents that are needed to create a unique package for you and your home loan. Your lender will typically review the following pieces of information when making their choice:
- Documents that verifies your employment: an example of this are your pay stubs
- Documents that verifies your identity: personal identification
- Documents that verifies your credit worthiness: your lender will request a credit report
- Documents that verifies your income: things like your bank statements, tax returns, and retirement accounts
How can I get a mortgage pre-approval?
Getting pre-approved for a home loan does not mean you are approved for a mortgage. It means that a lender has screened your background and thinks that you will be a good candidate to apply for a mortgage. They also provide the amount that you’re likely to get approved for.
If you’re ready to start on the path to owning a home, applying today is the first step forward!
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Owning for current rates and for more information.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Owning, Inc. does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Owning, Inc. Owning, Inc. its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. Owning does not provide tax advice. Please contact your tax adviser for any tax related questions.
