How does a hard pull preapproval work?

[Anonymous]

Hi, I'm wondering the details of a hard pull preapproval. If I were to do the preapproval by carmax online (hard pull), does that set the financing up to where I just go get the vehicle after paperwork, or do they do another hard pull at the dealership? Would I be stuck with 1 vehicle if I get pre-approval at carmax? If I got a DCU preapproval/check, do they simply do 1 hard pull to join and 1 for the loan (with no hard pull at the dealership)?

Thanks!!

[Medic981]

As I understand it, the HPs you incur while rate shopping for a car loan counts as only as one HP. As long as the HPs are done within a 45 day period for the purpose of FICO scoring. I don't think it matters if you look at two different cars or ten as long as it is done in that 45-day window. If you end up purchasing two cars and have two different loans, then I am not sure.

[Anonymous]

Thanks. I am talking about something slightly different, though. Not neccessarily how my report looks, but if a company that does a HP for a preapproval does another HP (and this one will have a slightly lower score because of the original) upon finalization. Or, if he does one HP and you are covered.

Same for DCU, do they do the original HP for the check, and then no more HP's?

[Anonymous]

Yes, generally if you do a pre approval that involves a hard pull its more of an approval up to a certain dollar figure. Often these types of approvals by credit unions are accompanied by a check you can use to buy the car. Doing this at a dealer is the same, your getting approval for a dollar figure and they will just plug in the particulars of the deal when you pick out a car. These are usually time sensitive and a second pull would be required if the circumstances of your request change such as applicants or new credit lines.