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).<\/p>\n\n\n\n
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Also called a \u201csoft inquiry\u201d or a \u201csoft pull,\u201d soft credit checks don’t impact your credit score<\/a> because they don\u2019t really signal to a credit bureau that you\u2019re applying for a loan\u2014merely that you\u2019re shopping around or keeping track of your credit.\u00a0<\/p>\n\n\n\n When you get a hard credit check<\/a>, 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 available 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 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 Now, if you\u2019re smart and go with a lender that does a soft credit check (like Tomo Mortgage<\/a>) for a pre approval<\/a>, then guess what? No hit to your credit score 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 how long most other lenders pre approvals last before you need a new one). But get this, here at Tomo Mortgage, your credit won’t take a hit AND, our pre approval is good for 120 days, giving you an extra month to shop. 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<\/a>, it\u2019s been accepted, and you\u2019re ready to close, every lender you\u2019re shopping with<\/a> will need to do a hard credit check (including Tomo Mortgage). But before you start stressing, know that this dip is usually temporary, and typically a reduction of around 5 points give or take.\u00a0It\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 Utilizing a soft credit check allows us to get you pre approved sooner in your home buying process, and helps you know how much you can afford, without punishing you for shopping around. A soft credit check also gets you your pre approval faster\u2014as quick as 15 minutes.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n It\u2019s usually during the final stretch when you\u2019re locking in that rate. After you\u2019ve made an offer<\/a> and are in the approval phase, your lender will dive into your credit history with a hard pull. This step is all about double-checking you\u2019re solid for the loan before you seal the deal. It\u2019s like the final test to make sure you\u2019re good to go!<\/p>\n\n\nDo I have to have a hard credit check when I get a pre approval?<\/h3>\n\n\n\n
Why does Tomo Mortgage use a soft credit check for my pre approval?<\/h3>\n\n\n\n
When do you get hit with a hard credit pull while buying a home?<\/h3>\n\n\n\n