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Hi,
Was just wondering, if you get per-qualified with a lender, they do a Hard-Pull and are approved but you never proceed any further (not able to find a house you like or whatever) how much does that affect your scores? Also, after one year, the hard-pull can no longer reflect on your scores and will drop off after two years? Last, would having a hard-pull for a mortgage that you never completed be a negative if you decided to apply again in another year?
Thanks
Anyone?
I believe it would affect your score just like any hard pull. When they pulled my credit for my mortgage score, my scores dropped 9 points.
in my experience.... 3 - 5 points usually.
lots of factors though. lots of other inquiries might change this. thin credit file might get hit harder.
just my speculation on that though
@Anonymous wrote:Hi,
Was just wondering, if you get per-qualified with a lender, they do a Hard-Pull and are approved but you never proceed any further (not able to find a house you like or whatever) how much does that affect your scores? Also, after one year, the hard-pull can no longer reflect on your scores and will drop off after two years? Last, would having a hard-pull for a mortgage that you never completed be a negative if you decided to apply again in another year?
Thanks
Agree with DallasLoanGuy above. As to the HP being a negative - no. The lender may or may not even ask you about it. Some lenders only ask about inq's 4 months and newer. Some go back a little further, but it isn't a big deal at all. Usually they just want a LOE (Letter of Explanation). In real world practical terms a LOE is a sentence or two. You tell them what happened: for example, 'I applied for a mortgage on X date and changed my mind. I decided to wait a year before buying.'
It really is that simple.
Some LOE's are a little more detailed for different subjects, but in my experience, simple and straight to the point is better.