topic Re: Mortgage credit pull meaning advice in Understanding FICO® Scoring

Mortgage credit pull meaning advice

pat0812 — Mon, 16 Jan 2017 11:58:50 GMT

How does my score get affected by multiple mortgage brokers pulling my credit ?

I'm only getting pre approvals now so my understanding that all pulls in a certain time frame count as 1 ?

What happens if my mortgages scores are just above 740 but in 2 months when I finalize my purchase they will pull again my credit, will it drop again as it's in a different time frame ? and my score might be under 740 and i wont qualify for the best rates ?

Re: Mortgage credit pull meaning advice

Anonymous — Mon, 16 Jan 2017 15:13:42 GMT

My comments in blue below. :-)

@pat0812 wrote:
How does my score get affected by multiple mortgage brokers pulling my credit ?
I'm only getting pre approvals now so my understanding that all pulls in a certain time frame count as 1 ?

That's right. All those brokers will count as one pull. I think that the window for the old mortgage models was and probably still is 14 days. (Happy to be corrected.) Therefore I would make sure that all those pulls are within 12 days of each other, just to be sure.

Furthermore, for the 30 days following your first mortgage pull, none of those inquiries will count at all. After 31 days, they will all count as one inquiry.

What happens if my mortgages scores are just above 740 but in 2 months when I finalize my purchase they will pull again my credit, will it drop again as it's in a different time frame ? and my score might be under 740 and i wont qualify for the best rates ?

Not really. Suppose your first pre-approval inquiry was on Jan 10. For 30 days there will be no scoring impact. Then on Feb 10 (roughly) it will affect you as one inquiry. Now suppose that sometime in March you find the house that you want, make an offer, go under contract, etc. Then on April 4 the underwriters pull your credit one last time.

On the April 4th pull, your score will be affected by the single collective inquiry in January. But the April 4 pull won't be affected by itself, and indeed (as mentioned before) mortgage inquiries won't affect your score for the first 30 days. Therefore the underwriters could even pull your credit again in late April and it wouldn't affect the score for the April underwriting.

So if you think that your January inquiries (all lumped as 1) could lower your score to below a critical threshold, then you can certainly go to myFICO 32 days after the last January inquiry (early March?) and pull your mortgage scores one last time.

Re: Mortgage credit pull meaning advice

Revelate — Mon, 16 Jan 2017 15:42:13 GMT

EX 98: 14 days

Since this is the shortest, it's the ballgame.

For completeness: EQ/TU 04: should be 45 if they're the same, TU publishes it explicitly in their documentation it's 45. Allegedly 30 from forum wisdom back in the day. FICO 8 is 45 days as well.

Re: Mortgage credit pull meaning advice

iv — Mon, 16 Jan 2017 18:28:46 GMT

@Revelate wrote:
EX 98: 14 days

Since this is the shortest, it's the ballgame.

For completeness: EQ/TU 04: should be 45 if they're the same, TU publishes it explicitly in their documentation it's 45. Allegedly 30 from forum wisdom back in the day. FICO 8 is 45 days as well.

30 days is the time after the auto/mortgage inquiry is made that it's not yet counted for scoring... that's not the same thing as the de-dup window.

14(EX)/45(EQ/TU) days is the de-dup window.