{"id":6497,"date":"2025-08-19T09:02:00","date_gmt":"2025-08-19T09:02:00","guid":{"rendered":"https:\/\/www.guidanceresidential.com\/resources\/?p=6497"},"modified":"2025-09-29T18:28:45","modified_gmt":"2025-09-29T18:28:45","slug":"could-mortgage-pre-approval-hurt-your-credit-score","status":"publish","type":"post","link":"https:\/\/www.guidanceresidential.com\/resources\/home-buying\/could-mortgage-pre-approval-hurt-your-credit-score\/","title":{"rendered":"Solved: Could Mortgage Pre-Approval Hurt Your Credit Score?"},"content":{"rendered":"\n

Unless you are planning to pay all cash, mortgage pre-approval is an important step<\/strong> in the process of buying a home \u2014 no matter what type of financing you choose.<\/p>\n\n\n\n

You may have heard that applying for a credit card can reduce your credit score, and you might wonder if applying for mortgage preapproval would do the same. It\u2019s wise to protect your credit score when you\u2019re considering a big purchase.<\/p>\n\n\n\n

But there is good news: The impact of pre-approval on your credit score is small, and it\u2019s well worth the benefits<\/strong> when you\u2019re serious about buying a home.<\/p>\n\n\n\n

What Exactly Is Pre-Approval? <\/strong><\/h2>\n\n\n\n

Being pre-approved<\/a> means a home financier has verified <\/strong>the amount of money they will finance for you.<\/p>\n\n\n\n

When you fill out a mortgage pre-approval application, you provide documentation <\/strong>of information such as income, employment, and savings. The financier examines the buyer\u2019s financial background \u2014including credit score, income, and debts \u2014 to determine how much financing they\u2019re willing to provide.<\/p>\n\n\n\n

A financier will verify your application and give you a pre-approval letter <\/strong>stating the maximum amount of financing and the rate you may qualify for.<\/p>\n\n\n\n

Does Getting Pre-Approved Hurt Your Credit? <\/strong><\/h2>\n\n\n\n

Mortgage pre-approval can temporarily reduce your credit score by a few points, but there is no way around it in the homebuying process. If you were to somehow skip this step, your credit score would take a slight hit later when you find a house to buy and apply for financing. And you will need that preapproval letter to look for homes and to make an offer.<\/p>\n\n\n\n

Pre-approval \u2014 and the hard credit inquiry that comes with it \u2014 is a necessary part of the process of applying for assistance with a large purchase. <\/strong><\/p>\n\n\n\n

The reason pre-approval affects your credit score is that, as part of the process, you are giving the mortgage lender or other financier permission to pull your credit scores and view your credit reports from the three main credit bureaus: Equifax, Experian, and TransUnion.<\/p>\n\n\n\n

The financing provider needs to see that a potential customer is likely to be able to hold up his or her end of the deal, and credit can be an indicator. They are looking to see how well the prospective home buyer has managed the obligations he or she already has. <\/p>\n\n\n\n

Hard vs. Soft Credit Check: What’s the Difference? <\/strong><\/h4>\n\n\n\n

When a financier checks your credit as part of the preapproval process, there are two types of credit inquiries they could make: a soft credit inquiry or a hard credit one.<\/a><\/p>\n\n\n\n

If you are not applying for credit but only for a rate quote, the inquiry is a soft one. Soft inquiries don’t affect your credit score.<\/p>\n\n\n\n

If you are applying for credit or other financing, that is a hard inquiry (also known as a hard pull). A hard inquiry is recorded on your credit report and may temporarily affect your score because it is associated with new debt.<\/p>\n\n\n\n

A pre-approval usually generates a hard credit inquiry. <\/p>\n\n\n\n

What’s the Effect on My Credit Score? <\/strong><\/h3>\n\n\n\n

How much difference does a hard inquiry make to your credit score? According to myFICO, the answer is generally less than five points.<\/strong><\/p>\n\n\n\n

The exact effect will differ according to the circumstances. Maintaining a good credit score can help you become eligible for special mortgage programs or financial assistance. If you have a short credit history or not many accounts, each new inquiry will affect your score more than if you have a long credit history and many accounts. Multiple hard inquiries \u2014 for example, if you apply for pre-approval over a long period of time with multiple financiers \u2014 could affect your score by more points. <\/p>\n\n\n\n

Check out our tips on how to get your credit ready for a mortgage<\/a>.<\/p>\n\n\n\n

How Long Does the Effect Last?<\/h4>\n\n\n\n

The effect of a hard credit pull is temporary. According to myFICO, the inquiry is no longer factored into your FICO scores after one year and it will drop off your credit report entirely after two years.  <\/p>\n\n\n\n

Minimizing the Effect <\/strong><\/h4>\n\n\n\n

There are ways to minimize the impact of a credit inquiry on your credit score:<\/p>\n\n\n\n