Mortgage Credit Scores? Should go up or down?

[firemartinez1980]

If I apply for a Mortgage and for whatever reason I do not get it, how bad does that application hurt my credit and for how long? 

Also, I have seen stories where people apply with one or two lenders and get denied and then apply elsewhere and get approved. So is it a good idea to apply multiple times like that or will that hurt my credit too if not approved?

Im a first-time home buyer so any info helps

[CreditInspired]

As long as it is within a 45-day period (may be 30), an underwritwr will lump those inquiries as 1. 

[pgtackle2003]

The only hit your credit takes in this case is the inquiries for when they review your credit. The score impact from a inquiry is pretty minimal and a short term affect. For Fico scoring you are allowed to 'shop' so that means you can apply with multiple lenders and the inquiries will only affect your score as if it was one inquiry. Certainly do encourage you to apply with multiple lenders, even if the 1st one approves you, it's a good idea to rate shop with other lenders.

Good Luck!

[firemartinez1980]

Thanks for the info....Only other question I have is, does the amount you apply for matter for approval? Are you more likely to be approved for a smaller loan than a bigger one or are the odds basically the same

[pgtackle2003]

Essentially yes it does matter. There are dozens of mortgage estimators online. These will take things into affect such as your income and other debts ( like car payments, Studen loan etc) and give you an estimation of how much you may be approved for. This would give you an idea if this would be enough in the area you’re looking to buy

[CreditInspired]

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@firemartinez1980 wrote:
Thanks for the info....Only other question I have is, does the amount you apply for matter for approval? Are you more likely to be approved for a smaller loan than a bigger one or are the odds basically the same

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You’re going to be approved for the amount you’re qualified for, which is based on your scores and DTI. So no matter what you qualify for, you have the option of looking for homes up to that amount. For example, I qualified for $458K. But I didnt feel comfortable with that size monthly payment. So I found a condo for $325K and submitted a contract. 

[firemartinez1980]

Thanks! That's the info I was looking for. I wasn't sure if it was like getting a car where you see the car you want, the price is $25,000 and that's what you apply for. Seems like you apply and then get an overall total and basically shop of that and the price you can actually afford per month. Correct me if I am wrong.......Sorry, first time homebuyer here 

[CreditInspired]

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@firemartinez1980 wrote:

Thanks! That's the info I was looking for. I wasn't sure if it was like getting a car where you see the car you want, the price is $25,000 and that's what you apply for. Seems like you apply and then get an overall total and basically shop of that and the price you can actually afford per month. Correct me if I am wrong.......Sorry, first time homebuyer here 

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No need to apologize--everyone who has purchased a home was also a first-time homebuyer once. The good thing is you're doing your research and homework, and asking questions. You're on the right track.