How Much Impact Will A Credit Check Have On Your Score?
When applying for a mortgage, your credit score will be taken into consideration, and the lender will use this information to determine whether or not your mortgage will be approved.
A credit check will be conducted, and there are two different types, including a hard check, which will affect your score and a soft check, which will not. A soft check will be conducted whenever a financial institution needs to check your credit for reference purposes, and they do not need your permission for a soft credit check as this will not have any impact on your score and will not be visible on your credit bureau. If you ever check your own credit, this, too, would be considered a soft check.
If you are applying for a mortgage or credit of any kind, a hard credit check will be conducted. This can impact your score, but the degree to which you are impacted will vary based on a few factors. If you have an excellent score, you will qualify for a mortgage and would be eligible for the lowest rate. The maximum score is 900, so anyone with a score of 650 or higher would be considered a great candidate and would qualify for a mortgage. Additionally, a hard credit check would have a minimal impact on your score, which would drop by only a few points.
Anytime a hard credit check is completed, your score will drop to some extent, but this will vary based on your overall credit portfolio. Those with healthy credit may see their score drop by a couple of points, and this would not change a thing as the difference would be meaningless. If your score is lower than 650, the lender will use the credit check to determine whether or not you qualify for a mortgage and would analyze the information to see if they will approve or decline your mortgage.
You can complete as many credit checks as you like within a 45-day period because this would count as a single check towards your score if the purpose is to apply for a mortgage. Every one of these checks will be listed on your credit bureau, however, so a lender or broker would be able to see this information.
In most cases, you don’t need multiple brokers or financial institutions to check on your credit because a reputable mortgage specialist would be able to notify you of the rate you can expect without going through this process if you have strong credit.
If you want to work with the best mortgage broker in Edmonton, Collin Bruce can help. Our mortgage advisors can provide you with the best-fixed rate and will help you do a comparison because we are one of the top mortgage companies and our brokers are experts in this field. Whether you are a first-time homebuyer, are interested in second mortgages or a reverse mortgage, need to refinance or need a no down payment mortgage, we do it all. We will help you get a pre-approval, so give us a call today!
