For mortgage purposes, credit inquiries generally have little impact .  FICO realizes that most people shop for a mortgage and that lenders must run credit reports to provide accurate rate quotes and pre-approve a buyer.  Typically, borrowers are going to do their lender shopping during a short amount of time.  Therefore, when a mortgage inquiry is made on a credit report during a 30-day time frame, it only counts as one inquiry.  For example, if a mortgage inquiry is made on March 1st, 5th and 10th, those 3 inquiries only count as one inquiry in the FICO scoring formula.  However, if a new mortgage inquiry is made on March 31st, since its past the 30 days of the first inquiry, there will be a 2nd inquiry included in the FICO score calculation. It’s also only the 2nd inquiry because the inquiries made on the 5th and 10th are still within a 30-day time frame and are included in that inquiry calculation.  Different types of credit inquiries count towards the FICO calculations. If a credit card is applied for during the same time period of mortgage inquiries, then the credit card inquiry is scored as a second inquiry because it’s a different type of credit.  Credit inquiries only account for 10% of the scoring model, so inquiries in general have a minimal impact.  If scores are low, its generally because of late payments, collections or high credit utilization, not inquiries.  To get pre-approved for a mortgage, please contact Jolynn.

By |2016-06-28T18:30:48+00:00June 28th, 2016|