The Truth Behind Credit Inquiries
The number one objection I get before someone gets pre-qualified is that they fear having their credit pulled.
First, let me assure you, having your credit pulled will not turn great credit into good credit, nor will it turn mediocre credit into "bad" credit. Credit inquiries have a minimal impact, if any impact at all, to your score.
The reason credit inquiries have any affect to your score is because the credit bureaus are unsure if those inquiries will result in new debt, and whether the individual can handle that new debt obligation. For that reason, having many inquiries in a short period of time throughout many different industries (i.e. car loans, student loans, credit cards, etc...) will have a greater impact on your score rather than having multiple home loan lenders pull your score within the same month. In fact, you can have your credit pulled by as many different mortgage lenders within a 45-day time frame and it only impacts your score on that first pull. Don't believe me? Read it straight from the CFPB!
"But Hillary, I already know i have excellent credit, so why bother?"
Maybe you know you have excellent credit. Maybe you are still at least a year away from wanting to purchase. Both thoughts are absolutely valid. However, your credit is much more than the score alone. Your score helps us to determine what programs you can use and your pricing options, but your report helps us put forth a concrete plan.