My New Blog

Why Credit Protection Matters When You Compare Lenders

Your credit score influences approval, pricing, cash-to-close, and underwriting speed. The goal is to compare real mortgage options without dinging your score. The good news: with a little planning, you can.

The key is understanding how credit inquiries work and how to time them wisely.

Part 1 — Shop Smarter: Minimize Score Impact While You Compare

Keep Credit Checks Inside One Window

Credit scoring models like FICO® and VantageScore treat multiple mortgage inquiries as one when they occur within a condensed window (roughly 14–45 days, model-dependent).
Action: Gather documents, then request quotes from a few lenders within the same period.

Start With Prequalification (Soft Pull)

A prequalification typically uses a soft inquiry (no score impact) to estimate options. When you’re ready to proceed, move to pre-approval (usually a hard pull) for stronger offer credibility.
Start Securely Online

Avoid New Debt & Big Purchases

• Don’t open new credit cards or loans during shopping.
• Keep credit card balances low (ideally <30% of limit).
• Avoid large discretionary buys that add to DTI.

Review & Clean Up Reports First

• Pull free reports at AnnualCreditReport.com.
• Dispute errors; correct late-payment reporting.
• Settle/verify any collections where appropriate.

Pay Down Revolving Balances

Lower utilization = stronger score. This easily outweighs the minor, short-lived impact of a few mortgage inquiries.

Part 2 — Credit Scores: A Plain-English Guide (What to Know Before You Apply)

What’s an Inquiry?

• Soft inquiry: You checking your credit, pre-qualification offers, employer/insurance checks. Effect: None.
• Hard inquiry: A lender checks credit after you apply (mortgage, auto, card). Effect: Small, temporary dip.

How Much Does a Hard Inquiry Matter?

• Minor compared with payment history and balances/utilization.
• Impacts most FICO® scores for ~12 months; remains visible ~24 months.
• Several hard pulls in a short time can add up—apply with intent.

“Rate-Shopping” Without the Penalty

• Multiple same-type (mortgage/auto) hard pulls in a short window are generally counted as one for scoring.
• Best practice: Organize docs; bundle mortgage applications inside one window.

Pre-Qualification vs. Pre-Approval

• Pre-qualification (soft pull): Quick estimate; no score impact.
• Pre-approval (hard pull): Verified with docs; small, temporary impact; stronger with sellers.

Smart Habits to Minimize Impact

• Plan applications; bundle quotes.
• Keep balances low and pay on time.
• Avoid “just browsing” credit card applications.
• Check your own credit regularly (soft pulls).

Common Myths—Debunked

• “Looking at my own credit hurts my score.” False — soft inquiry.
• “Any inquiry tanks my score.” False — small, short-lived effect.
• “All inquiries are treated the same.” False — rate-shopping rules apply.

What Matters Most in FICO® Scores

1. Payment history 2) Amounts owed/utilization 3) Length of history
2. New credit (incl. inquiries) 5) Credit mix

Quick Checklist Before You Apply

• Review reports at AnnualCreditReport.com.
• Avoid unwanted solicitations by Opting-Out.
• Pay down revolving balances if possible.
• Gather income/asset documents to shop efficiently inside one window.
• Start with pre-qualification (soft) before full pre-approval (hard).

Friendly FAQs

• Does checking my own credit hurt my score? No—soft pull.
• How long does a hard inquiry affect me? ~12 months for scoring; visible ~24 months.
• Will shopping multiple lenders crush my score? Not if grouped within the window—treated like one.

Helpful, Clickable Resources

• How Credit Inquiries Affect Your Score (FICO®)
• AnnualCreditReport.com — Free Reports
• Seattle Times: Shop for a Mortgage Without Hurting Your Score
• Start or Revisit Your Application (Pacific Coast Financial LLC)

This communication is for informational purposes only and does not constitute a commitment to lend, an offer to extend credit, or an advertisement for a specific mortgage transaction.
All programs, terms, and conditions are subject to change without notice. Equal Housing Lender. Licensed in WA under Pacific Coast Financial LLC | NMLS #78980.