Alright, so you\u2019re getting serious about buying a house and wondering if a credit check is going to mess with your score. The answer? It depends on where you\u2019re getting your pre approval. There are two types of credit checks: soft checks and hard checks. And yes, one of them can give your score a little nudge down\u2014but don\u2019t freak out just yet.<\/p>\n\n\n\n
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If a lender runs a hard credit check, then yeah, your score might take a small hit. <\/p>\n\n\n\n
Now, if you\u2019re smart and go with a lender that does a soft credit check (like Tomo Mortgage) for a pre approval<\/a>, then guess what? No hit to your credit score<\/a> at all. This is a big win because it means you can get pre approved without sweating over multiple hits to your credit if you don\u2019t snag a house within the 90-day window (that\u2019s usually how long pre-approvals last before you need a new one). Plus, you can get your pre approval done sooner, which means you\u2019ll have a better grip on your budget before you\u2019re ready to throw down an offer.<\/p>\n\n\n\n <\/p>\n\n\n\n Once you\u2019re further down the line and have made an offer and you\u2019re ready to close, every lender will need to do a hard credit check (including Tomo Mortgage). But before you start stressing, know that this dip is usually temporary. It\u2019s like a minor bruise on your credit score\u2019s ego\u2014it\u2019ll bounce back.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n A soft-credit check is basically a little peek behind the curtain. You\u2019ve probably done soft credit checks on yourself (if you haven\u2019t, you should), where your mobile banking or credit card app tells whether your credit score is up or down on any given day. You might get soft credit checks from employers or credit card applications, too (they\u2019re pretty common). Also called a \u201csoft inquiry\u201d or a \u201csoft pull,\u201d soft credit checks don’t impact your credit score because they don\u2019t really signal to a credit bureau that you\u2019re applying for a loan\u2014merely that you\u2019re shopping around.<\/p>\n\n\n\n <\/p>\n\n\n\n When you get a hard credit check, here\u2019s what\u2019s really happening. The lender\u2019s going to pull your credit report from the big three\u2014Equifax<\/a>, Experian<\/a>, and TransUnion.<\/a> Each one of these credit bureaus has its own report on you, so the lender will be checking all three to get the full scoop on your credit history. They\u2019ll be looking at your payment history, how much of your credit you\u2019re using, and any debts you\u2019ve got hanging around. This credit check is their way of figuring out if lending you money is a smart move or a risky bet. Plus, it\u2019s going to impact the interest rate<\/a> they offer you. So, if you\u2019ve been keeping your credit reports squeaky clean, this part of the process will be a breeze.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n Spoiler alert: there\u2019s no difference. A credit check and a credit pull are just two ways of saying the same thing. Both mean someone\u2019s taking a look at your credit report from the bureaus.<\/p>\n\n\n\n <\/p>\n\n\n\n Here\u2019s the silver lining\u2014even if your credit score takes a small dip from a hard check, you\u2019ve got the power to boost it back up. Making your mortgage payments on time isn\u2019t just good for your bank account; it\u2019s also going to help your score rebound and get even better over time. Payment history is a big deal for your credit score, and showing the world that you can handle your finances is going to pay off. Plus, having a mortgage adds some diversity to your credit mix, which can give your score a little extra love. So, while that initial dip might sting a bit, solid payment habits will set you up for a stronger credit score in the long run.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n Here\u2019s the deal\u2014credit checks are just part of the home-buying game, and yeah, they might affect your score a bit. Monitoring your credit regularly is a smart move, so you can catch any errors or issues before the lenders do. You can get a free credit report once a year from each of the three major bureaus through AnnualCreditReport.com<\/a>. So, go ahead and take advantage of that to stay on top of your financial health.<\/p>\n\n\n\n <\/p>\n\n\n\n Curious to learn more about what credit score you need to buy a home? Check out our guide for all the deets.<\/p>\n\n\n\n <\/p>\n\n\nWhat happens during a credit check?<\/h3>\n\n\n\n
Bonus: credit check vs. credit pull\u2014what\u2019s the difference?<\/h3>\n\n\n\n
Keep that score high<\/h3>\n\n\n\n
What\u2019s the bottom line?<\/h3>\n\n\n\n