We always encourage our future homebuyers to shop around; however, if you are not careful, you could unnecessarily hurt your credit score. Below are a few tips on how you can avoid extra damage to your credit score!
Shop around within a short timeframe
When you’re ready to get pre-approved, aim to do it within a 45-day time frame. This will allow the credit inquiries to appear as one inquiry on your credit report.
Get Pre-Qualified
To pre-qualify for a loan, lenders check your credit report and conduct a soft pull; which prescreens your report without affecting your score.
Get Pre-Approved with a TBD Loan
Receive full financial approval as a buyer up front WHILE you shop for a home. A soft pull is conducted, so you can shop for a home with certainty and not worry about your credit score being negatively affected.
Hold off on applying for new credit
Multiple inquiries for different types of credit can negatively impact your credit score, hindering your efforts to obtain a competitive mortgage rate. Wait until you officially close your mortgage loan before applying for additional forms of credit.
Pay down debt
If your credit score could use improvement, one of the best ways to raise it is to pay down your debt, like credit card balances. This will lower your debt-to-income ratio!
Contact us today so we can jumpstart your home journey!