Over 500 borrowers come to JVM every month seeking mortgages.
And way too many of them are far too concerned about credit inquiries.
It is our strongest borrowers who are often the most concerned, which is ironic b/c they are the least affected by credit inquiries.
This is b/c credit inquires only affect a strong borrower’s credit score by a few points at most.
And even that impact disappears after a few months.
It is true that “hard inquiries” remain on a credit report for a few years, but they stop impacting credit scores long before they drop off a credit report.
Further, the credit bureaus or scoring models treat multiple inquiries from different mortgage lenders over a 30 day period as a single inquiry.
It is only when borrowers apply for a large number of credit cards or apply for a large amount of credit from different types of credit providers over a short period of time that the scoring models become concerned.
But a single inquiry from one mortgage provider will hardly impact a strong borrower’s credit at all. And even if it does, the impact will only be a few points and it will disappear in a few months.
For readers who would like to learn more, Credit Karma has a more detailed discussion about credit inquiries here.
As an aside, I also recommend signing up for the Credit Karma App. It is a great way to keep tabs on your credit and credit score.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167