Too many mortgage preapprovals could actually hurt your credit score. Be careful!
When you’ve decided you’re ready to buy a home, one of the first things you’ll want to do is get preapproved for your mortgage. After all, with your preapproval in hand you’ll know you have the financing you need to actually buy a home. What’s more, your preapproval can help you nail down your home buying budget.
There is a problem, though. You should be careful of getting too many mortgage preapprovals or your credit score could take a dip. Each time you get a preapproval, there’s a hard pull on your credit score. Too many of these hard pulls can actually cause your credit score to decrease, compromising your ability to get the best possible rate on your mortgage.
On the one hand, you want to be as prepared as possible for buying your home. On the other, you don’t want to damage your credit score. Fortunately, there is a happy middle ground. Prequalification, rather than preapproval, can give you a realistic mortgage idea. You can use your prequalification to start shopping for homes, then get preapproved once you have a few you’re willing to get serious about.
Once you do get your preapproval, know your timeframe for using it. Generally, your credit report will be good for 120 days so it’s in your best interest to work to find a home four months from you preapproval.
Fortunately, you won’t have to get numerous preapprovals if you go straight to the right lender. To get dedicated service, expert guidance, and competitive rates on your California or Texas home loan, contact Andraya Coulter in Walnut Creek. I’m here to make sure you avoid mistakes like too many preapprovals while also helping you secure the right mortgage.