Over the weekend, we were helping a couple of our Downtown San Diego Real Estate buyers that had come to us with a pre-qualification from their bank. As we toured some of the available Condos For Sale throughout the East Village, we got to talking about their pre-qual and about how we thought it would be a good idea for them to get a second, even third opinion before locking in a rate/terms. The main concern that our client had was the multiple credit inquiries that the second opinion would have on their credit score. This is a very common concern that we have run across with our clients, and rightfully so, as multiple credit inquiries can absolutely have a negative effect on your credit score.
So here is the good news. Mortgage and auto inquiries affect your credit a little differently. While the initial credit pull does count as an inquiry, any subsequent inquiries within the next 30 days, in the same industry, are grouped together and counted as one. The credit reporting agencies know that when you’re going to rate shop when looking for a large loan such as a mortgage or auto loan and do not penalize you for trying to find the best rate. Thankfully so because in some instances, such as auto shopping, the dealer may pull 5-10 different lenders to see who offers the best deal. Luckily, we were able to relay this information to our clients and give them the peace of mind that their good credit score would remain intact and they ended up getting a second and third opinion and saving over 0.75% on their rate.
Hopefully this information helps you while searching for the mortgage loan that best fits your need. Please don’t hesitate to contact us with any other questions about Downtown San Diego Real Estate or to inquire about a Downtown San Diego Home for sale. Have a great week. ')}