The Truth About Credit Pulls Before Getting Your Pre-Approval

One of the crucial steps to purchase a home is pre-approval! Yet so many buyers are afraid to get pre-approval because they don’t know how to check their credit scores without hurting their credit. Unfortunately, this is almost impossible! Although hesitation is normal, a hard check on credit will likely temporarily reduce the credit score of any buyer.

This is a natural part of the home-buying process. Another critical step to home ownership, of course, is maintaining a clear understanding of financial capabilities. This overall understanding will have a greater impact on the likelihood of finally landing your dream house than risking a temporary 20-point drop in your credit score. Having your credit assessed unveils your true buying power and an accurate estimation of what your monthly mortgage payment ends up being. Better than trusting a Karma Credit check, which isn’t always accurate, potential home buyers should always pull their credit with a trusted lender. 

Addressing Initial Credit Pull Concerns

Some buyers may hesitate to pull their credit due to concerns about potential negative impacts on their credit scores. It's important to understand that multiple credit inquiries within a short period (typically around 30 days) for mortgage-related purposes are usually treated as a single inquiry. This means that credit pulls from multiple lenders during this timeframe should have minimal impact on your credit score. Plus, when a lender hard pulls your score, it is valid for up to 120 days, and some lenders even check credit scores for free.

Benefits of Pulling Your Credit Score with a Trusted Lender

Unveils Buying Power: 

The best way to check your credit score is with a trusted lender. Pulling your score is a vital step in uncovering your overall buying power. Many factors, such as credit score, income, debt-to-income ratio, and employment history, contribute to determining how much a lender is willing to lend you. By having your credit pulled by a lender, you can get a clearer picture of your creditworthiness and a trustworthy estimate of the loan amount you are eligible for. 

Provides Accurate Representation: 

Correctly estimating your monthly mortgage payment is crucial to ensure it aligns with your financial goals and future obligations. A credit pull with a trusted lender allows them to access your credit report and financial information, in turn enabling them to provide a more accurate representation of your future monthly payment. Once lenders understand your creditworthiness they are able to tailor mortgage options that suit your specific needs and financial situation. 

In the end, checking credit score pre-approval for your mortgage empowers you to make informed decisions about the type of home you can comfortably afford, helping to avoid unpleasant surprises and financial discomfort down the line.

Improves Negotiation Power: 

Pulling a pre-approval credit check gives you the upper hand when it comes to negotiations. After the initial credit pull, you’ll be armed with the resulting pre-approval letter and will be able to demonstrate to sellers that you are a serious and qualified buyer. By taking the proactive step of pulling your credit with a trusted lender, you position yourself as a reliable buyer. In turn, this makes sellers more inclined to consider your offers and gives you a competitive edge against other potential buyers interested in the same property.

Don't let the fear of credit pulls hold you back from understanding your financial capabilities. Instead, embrace the truth that credit pulls give, and continue down the path to finding your dream home while staying within your means. Get in touch with our team of experts to find out more about the best place to check your credit score in the area

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