"Whether you're buying a house in Los Angeles, CA or , understanding how credit inquiries work can help you start your search with confidence. The truth is that a mortgage pre-approval affect your credit score, but usually only by a small amount and for a short period of time. In most cases, the benefits of being pre-approved far outweigh the minor, temporary credit dip."
"Yes, getting pre-approved will result in a hard credit inquiry, which may temporarily lower your credit score by a few points-usually between 3 and 8 points. This impact is: Small: A few points for most borrowers Short-lived: Your score often rebounds within weeks Normal: All lenders require a hard inquiry to verify credit before issuing a pre-approval A hard inquiry signals that you're applying for credit. Mortgage and auto loan inquiries, however, are treated differently than credit card inquiries because they're associated with rate shopping."
A mortgage pre-approval requires a hard credit inquiry that typically lowers a credit score by a few points, usually between 3 and 8 points. Pre-qualification often uses a soft credit check, while pre-approval needs a hard pull. Hard inquiries stay on a credit report for two years but usually affect scores for up to 12 months. The score dip is generally small and often rebounds within weeks. Mortgage and auto loan inquiries are treated differently than credit card inquiries because rate shopping is expected. The benefits of obtaining pre-approval generally outweigh the temporary credit impact.
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