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Get Pre-Qualified To Buy With a Soft-Pull Credit Inquiry

April 13, 2023

Written by:

Jeff Caldwell – Branch Manager Overland Park – (913) 498-3333

When it comes to buying a house, your credit score plays a crucial role in determining your eligibility for a mortgage loan and the terms and conditions you may receive. One important aspect of the mortgage application process is the credit pull, which is a routine check of your credit report by lenders to assess your creditworthiness. If you’re planning to buy a house, it’s essential to understand credit pulls and how they can impact your homebuying journey.

What is a Credit Pull?

A credit pull, also known as a credit inquiry or credit check, is a process where lenders request a copy of your credit report from one or more credit bureaus to evaluate your creditworthiness. There are two types of credit pulls: hard inquiries and soft inquiries.

  1. Hard Inquiries: A hard inquiry occurs when a lender checks your credit report as part of the mortgage application process. Hard inquiries are initiated by you when you apply for a mortgage loan, and they can impact your credit score as they are recorded on your credit report. Multiple hard inquiries within a short period of time may indicate that you’re actively seeking credit, which can potentially lower your credit score.
  2. Soft Inquiries: A soft inquiry occurs when a lender or other authorized entity checks your credit report for informational purposes, such as pre-qualifying you for a loan or conducting a background check. Soft inquiries do not impact your credit score and are not visible to other lenders.

 

Credit pulls can have short-term impacts on your homebuying journey. A single hard inquiry only lowers your score by a few points, but multiple hard inquiries within a short period of time can potentially lower your credit score more significantly. It’s important to be mindful of this when applying for multiple loans or credit cards during the homebuying process.

A Soft Pull To Determine If You’re Pre-Approved

If you are thinking about buying a home but are reluctant to have your credit pulled for fear of hurting your score – Homestead Financial Mortgage offers a soft-pull option. By just providing a name and address, you can see if you can qualify for a home without pulling your credit and potentially lowering your score. A soft-pull option is a great first step when you’re considering buying to help determine where you stand; we call this Pre-Qualification. A full Pre-Approval, however, involves providing more documentation and a hard inquiry of your credit. This is the best when you’re ready to put an offer in on a home.

Even if you don’t qualify right now, you might qualify a year from now. The professionals at Homestead are here to get you from where you are – to where you need to be. We’re committed to working with you to ensure you become a homeowner and make your home-buying experience the best it can be!

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