Short answer-it depends. The majority of the time when a mortgage lender pulls a copy of your credit report, while it does show up as an inquiry on the tri-merge report, it does not necessarily make your credit score automatically drop. Where people get into trouble, is when they’re applying for a mortgage, applying for a credit card, applying for a car and shopping for different types of credit entities all within a 30 to 60 day period. In such a scenario, then yes it is likely to credit score would be adversely affected.
If you’re thinking about getting a mortgage or even just getting pre-qualified, then let the lender pull a copy of your credit report. Doing so will make sure the most accurate credit scores are provided in real time. Most mortgage lenders are also unable to use credit reports from any other company.
For example if you’re applying for a loan:
- and the credit report is from another mortgage company, this won’t work, will need to be in the name of the mortgage company you are choosing to work with, these are not transferable from one lender to another
- and the credit report is from the credit card company, this won’t work, will need to be in the name of the mortgage company
- and the credit report is from an identity theft protection company, once again this will not work, will need to be in the name of the mortgage company
In other words, every time you apply for a mortgage, it is a fresh clean start with each new mortgage company as far as obtaining a copy of the credit report. Because of the various credit reporting disclosures and the Fair Credit Reporting Act and the Home Mortgage Disclosure Act, an original credit report is indigenous to that particular credit company only. Want to discuss more? Contact Scott.Sheldon@nafinc.com today to discuss your loan scenario!