I am trying to purchase a house and have tried to get different companies to give me interest rate quotes. Will pulling my credit so much affect? I heard before that doing so will show you are "shopping" just curious. also does any one know the best place for low credit scores to get a loan? (I live in Florida if it helps)
2006-12-08 04:28:11 · 7 answers · asked by sparrowlover33 2 in Business & Finance ➔ Credit
I'm a Mortgage Loan Officer and yes letting several lenders pull your credit will lower your credit score.
If you only have it pulled two or three times you will be OK, but I just had a customer who's credit was pulled on Nov 1 (valid for 60 days) and it was pulled again by lender on Monday and her credit score went down 35 points! She had allowed credit to be pulled 17 times!!! That is extreme but I see it all the time.
Go to www.bankrate.com for more info on Mortgage Loans.
2006-12-08 05:43:13 · answer #1 · answered by Jen G 3 · 0⤊ 0⤋
Repeatedly pulling your credit can affect your score but not so much that it'll determine whether or not you will get a loan. As far as getting a loan, banks and lenders are less flexible when it comes to your interest rate. They tend to have some good programs though. Mortgage brokers are free to "shop" the rate, which in turn gives you a better deal. What your final rate comes down to is the program that you choose. Your rate will be lower if you were to choose an ARM (adjustable rate mortgage) over a fixed loan. It really depends on what your needs are at that time. Also, bigger companies such as a CountryWide or Wells Fargo have sub-prime divisions to deal exclusively with people with low credit scores. What I've found through experience is to go with the mortgage broker you feel most comfortable with and he/she should lead you in the right direction. Good Luck!
2006-12-08 12:38:34 · answer #2 · answered by Anthony M 1 · 0⤊ 0⤋
You're entitlled by law to one free credit report a year per credit bureau. Since there are three of them, you could space your inquiries so that every 4 months you ask one bureau for your free report. This would have minimal impact on your rating, and would not show that you're "shopping". Instead, it looks like you're "monitoring" your credit history to make sure it doesn't show any erroneous information.
Check out this article that explains how your credit score is calculated :
http://financialbasics.blogspot.com/2006/11/credit-reports-and-credit-reporting.html
As for the place for low credit scores to get a loan, I'm afraid I can't help you on this one. You can start off online, though. Run a google search...
2006-12-08 12:41:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
My credit was trashed by my divorce and when I went looking for a decent interest rate I had a lot of problems. This company gave me a good rate and it also an easy, quick form to fill out to see what you can get. Good luck
2006-12-08 12:33:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
This depends on how many are pulling the report and whether there have been other inquiries as well...unrelated...in the recent past (say 90 days).
Here is some additional info. Hope this helps.
2006-12-08 12:31:59 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You may want to find a mortgage broker. They will shop your loan to various lenders. It isn't supposed to lower your score by shopping for a mortgage, but it can.
2006-12-08 12:31:40 · answer #6 · answered by Flyby 6 · 0⤊ 0⤋
go to your local credit union - and yes "a bunch" of inquires will effect your score
2006-12-08 12:44:31 · answer #7 · answered by Anonymous · 0⤊ 0⤋