In my time as a mortgage broker I have heard the following statement so many times its starting to make my ears bleed:"I'm looking for a rate quote on a mortgage but already had my credit pulled with another broker/bank. Don't pull my credit because I don't want my score to go down as a result of multiple credit inquiries"
The consumer is being mis-informed and now its time for me to set the story straight. A little information can be dangerous and many brokers and banks use this myth for their own gain so that their potential prospect does not shop around for a better deal. In their 'What to know about rate shopping', Fair Isaac says the following:
"Looking for a mortgage or an auto loan may cause multiple lenders (or brokers) to request your credit report, even though you’re only looking for one loan. To compensate for this, the score ignores all mortgage and auto inquiries made in the 30 days prior to scoring. So if you find a loan within 30 days, the inquiries won't affect your score while you're rate shopping. In addition, the score looks on your credit report for auto or mortgage inquiries older than 30 days. If it finds some, it counts all those inquiries that fall in a typical shopping period as just one inquiry when determining your score. For FICO scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score."
I will not quote people a firm rate if I do not have a clear financial picture of the prospect I am trying to quote. It's absolutly a waste of time and useless. So I always want to see a credit report pulled from my credit reporting vendor as well as other supporting docs. I will not take a report from another vendor pulled by a different broker because I don't know if its been altered by the user. I hope that you find this enlightening and if a broker or bank tells you not to get another credit report pulled because it will decrease your score or show too many inquiries, then you can call them a liar.
David P. Cruickshank
Loan Consultant
Ardain Mortgage Corp.
1508 W Algonquin Rd.
Palatine, IL. 60067
Cell 847-354-5455
Office 847-963-1000
Fax 847-963-1010
davidc@ardain.com
http://www.ardainmortgage.com/
An Illinois Residential Mortgage Licensee
No comments:
Post a Comment