topic Re: Impact of Hard Inquiries Older Than 1 Year on Mortgage Applications in Mortgage Loans

Impact of Hard Inquiries Older Than 1 Year on Mortgage Applications

BR — Sun, 24 Dec 2023 18:05:34 GMT

I'm in the process of exploring mortgage options, including both FHA and conventional loans, and I have a question regarding the impact of credit inquiries. Specifically, I'm curious about the effect of hard inquiries on my credit report that are older than 1 year but less than 2 years.

How do these older hard inquiries impact mortgage applications for both FHA and conventional loans?
Is their influence on loan approval and interest rates significantly different compared to more recent inquiries?
For FHA loans, which are often more lenient on credit issues, are these older inquiries still a concern?
Similarly, for conventional loans, should I be worried about these older inquiries, or do lenders prioritize recent financial behavior?

Re: Impact of Hard Inquiries Older Than 1 Year on Mortgage Applications

Horseshoez — Sun, 24 Dec 2023 19:28:17 GMT

As I understand it, Hard Inquiries stop being a factor on all FICO models after one year.

Re: Impact of Hard Inquiries Older Than 1 Year on Mortgage Applications

BR — Sun, 24 Dec 2023 19:30:44 GMT

That's what i figured on the credit score side of things but was wondering if any manual checking could come back to stop the loan going through.

Re: Impact of Hard Inquiries Older Than 1 Year on Mortgage Applications

Horseshoez — Sun, 24 Dec 2023 19:33:52 GMT

Are you planning on getting a manually underwritten mortgage?

Re: Impact of Hard Inquiries Older Than 1 Year on Mortgage Applications

ShanetheMortgageMan — Sun, 24 Dec 2023 19:41:06 GMT

Credit reports used for mortgages usually only list inquiries over the prior 120 days. For those inquiries listed, you just need to explain if new credit was granted from them or not.

Re: Impact of Hard Inquiries Older Than 1 Year on Mortgage Applications

BR — Sun, 24 Dec 2023 21:44:17 GMT

OK sounds good, this is for a normal first time home buyer FHA or conventional so not anything special like manual underwriting.

The hard inquiries should stop affecting scores in 9 months and drop off in 1 year and 9 months but good to hear only the last 120 days of so is where it's most weighted.

Re: Impact of Hard Inquiries Older Than 1 Year on Mortgage Applications

Horseshoez — Mon, 25 Dec 2023 03:22:48 GMT

@BR wrote:
OK sounds good, this is for a normal first time home buyer FHA or conventional so not anything special like manual underwriting.

The hard inquiries should stop affecting scores in 9 months and drop off in 1 year and 9 months but good to hear only the last 120 days of so is where it's most weighted.

Not sure where you got those numbers, but I do not believe they are correct. Hard inquires stop affecting scores at the 12-month mark.

Re: Impact of Hard Inquiries Older Than 1 Year on Mortgage Applications

BR — Mon, 25 Dec 2023 04:17:38 GMT

no, i mean they are already 3 months old (i was chasing sign on bonuses + churning but thats too much work so im back to one cc now) so 9 months to go before it stops affecting the score and 1 year 9 months till they fall off.