Scott Synovic Mortgage Loan Originator Colorado's Mortgage Expert
  • About
  • Mortgage Blog
  • Contact
  • Apply Now

Scott Synovic CMA, CMPS, CMHS
Fairway Independent Mortgage
303.668.3350

FICO Scores 101: How to Shop for a New Mortgage Without Harming Your Credit Score

10/26/2015

 
Picture
It’s difficult to begin shopping around for a new mortgage without the facts on how this can affect your FICO score.Anybody who is holding off for fear that their credit score will be ruined by multiple credit checks has nothing to worry about. Mortgage brokers require this information to give an accurate quote, so many credit checks by different companies will have a minuscule effect on credit scores.

The system has been designed this way because a mortgage is not considered to be ‘bad debt’ by lenders and consumers should have the right to shop around without fear of their credit being destroyed by it.

Understanding The ‘Tiers’ Of Credit Checks

FICO scores are affected each time a credit inquiry is requested to check a borrower’s credit report. This makes sense, as every time somebody searches for new credit they increase their ability to acquire significant debt.

Thankfully, not all credit checks are created equal and they do not affect FICO scores in the same way. A mortgage loan is not considered remotely close to store credit cards, which allow a person to get into more debt. Debts on mortgages only get lower as time goes on, ranking them very low on the list of things lenders consider bad credit.

The One Thing To Know Before Shopping For A New Mortgage

Every time a credit card company or consumer loan company pulls a credit check, the borrower’s FICO score will fall, but this will not happen when multiple mortgage lenders pull the same person’s credit score.

This is because each credit card has the chance to accumulate debt, whereas only one mortgage will be taken out. So once a mortgage lender pulls your credit score, you will only receive one ‘ding’ even if other lenders pull your score afterwards.

Here is the important part: there is only a 14 day window from the first credit check where all other credit inquiries will be ignored. So it is imperative to plan ahead and shop around within a two week period to limit the impact on your FICO score.

Shopping around when looking for a new mortgage is a necessary step to getting the best possible deal, and thankfully the system is designed around not punishing people for doing this. It can be very intimidating to do alone and working with a professional mortgage specialist can relieve stress and get you the best deal on your new mortgage.

If you have any questions please contact me direct at 303.668.3350 for advice on the right steps to getting your new mortgage.

Scott Synovic is a top performing mortgage loan originator providing superior levels of service and satisfaction to clients and business partners in Colorado - www.scottsynovic.com NMLS #253799 Fairway Independent Mortgage Corporation #2289

Comments are closed.
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    APPLY NOW

    Archives

    February 2023
    January 2023
    December 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015

    Categories

    All

    RSS Feed

popular pages

Refinance
Eliminate PMI
Consolidate Debt
Mortgage Calculators
How Much is My Home Worth?
Interest Rates

Company

About Fairway Independent Mortgage Corporation
Financing Disclaimer
Contact

mortgage insight

join now
Communications Consent
Picture
Scott Synovic NMLS #253799 Fairway Independent Mortgage NMLS #2289
NMLS Consumer Access. Fairway Independent Mortgage Corporation
950 South Cherry Street, Suite #1515, Denver, Colorado 80246

Equal Housing Lender licensed through NMLS Regulated by the Division of Real Estate.
​Licensed Mortgage Loan Originator licensed in Colorado and California.
Not endorsed or sponsored by either state or any government agencies.

Picture
Picture
Picture
Featured in The Denver Post and 5280 Magazine as a Five Star Mortgage Professional
© Copyright 2022. All Rights Reserved.
  • About
  • Mortgage Blog
  • Contact
  • Apply Now