{"id":17593,"date":"2024-03-23T14:46:00","date_gmt":"2024-03-23T20:46:00","guid":{"rendered":"https:\/\/www.richmondamerican.com\/blog\/?p=17593"},"modified":"2025-03-10T09:40:59","modified_gmt":"2025-03-10T15:40:59","slug":"how-to-shop-for-a-mortgage-without-hurting-your-credit-much","status":"publish","type":"post","link":"https:\/\/www.richmondamerican.com\/blog\/how-to-shop-for-a-mortgage-without-hurting-your-credit-much\/","title":{"rendered":"How to Shop for a Mortgage Without Hurting Your Credit (Much)"},"content":{"rendered":"\n
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Wondering how to shop for a mortgage without hurting your credit? It\u2019s a valid concern, but don\u2019t worry. We\u2019ve rounded up some tips to help you protect your credit score while scoring the home of your dreams!<\/p>\n\n\n\n

Any time you signal to credit reporting agencies that you\u2019re looking to open a new line of credit, it\u2019s possible there will be an effect on your credit score. The good news is, when it comes to shopping for a mortgage, the decrease shouldn\u2019t be large enough to hurt your chances at a great rate if you make a plan and stick to it.<\/p>\n\n\n\n

1. Check your credit report before<\/u> you start applying for loans<\/h2>\n\n\n\n

Pulling your own credit report is free from annualcreditreport.com<\/a>. Regardless of how you check it or how often you check it, pulling your own credit report won\u2019t affect your credit score. Review your report carefully for errors, omissions or outdated information. If there\u2019s any work to be done in getting your credit mortgage-ready, be sure to do it before you start shopping lenders. Unpleasant surprises could cause delays or affect the rates lenders are willing to offer.<\/p>\n\n\n\n

2. Pay down credit cards before you shop for a mortgage<\/h2>\n\n\n\n

If you\u2019re carrying too much debt,lenders may be hesitant to offer you a mortgage, which means your credit could be dinged only for you to be denied a loan. So, if you can manage it, start paying off more than the minimum payment each month on all your credit cards. This can not only improve your credit and reduce your overall debt load\u2014it can also help you save money on interest and appear more mortgage-worthy in the eyes of prospective lenders. Learn more about improving your credit score<\/em><\/a>.<\/em><\/p>\n\n\n\n

3. Don\u2019t plan on applying for new credit until after<\/u> you\u2019ve closed on your new home<\/h2>\n\n\n\n

It may go without saying, but we\u2019re going to say it anyway. Refrain from opening new accounts when applying for a home loan. It can be easy to get caught up in the idea of furnishing your new home or buying a brand-new RV for your brand-new RV garage<\/a>, but new credit inquiries can be a big red flag for lending institutions. The same goes with closing any paid-off credit cards. Wait until you have closed on your home and then revisit the rest!<\/p>\n\n\n\n

4. Take time to vet potential lenders<\/h2>\n\n\n\n

Aside from finding a good real estate agent<\/a>, choosing a mortgage lender is a key step in your homebuying journey\u2014unless you\u2019re paying all cash, that is. While it\u2019s tempting to fill out as many online mortgage estimate requests as you can find on the internet, you may want to stick with lenders you\u2019ve taken the time to research before you let them run your credit. This can help you avoid predatory lenders, mortgage scams and even identity theft. But even setting aside the worst-case scenarios, keep in mind that the company with the lowest loan estimate may not always be the one that ultimately provides the best customer experience or value.  <\/p>\n\n\n\n

Not sure where to start?<\/h3>\n\n\n\n
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Ask your homebuilder<\/strong>
If you have decided to build a new-construction home, your homebuilder might partner with an affiliated mortgage lender that operates within the same parent organization (ours is HomeAmerican Mortgage Corporation<\/a> (NMLS ID 130676); see their licensing info here<\/a>). Because these teams work hand-in-hand every day, using your builder\u2019s affiliated lender could potentially expedite your loan process and get you into your new home faster. Moreover, some builders may offer attractive incentives for the use of their mortgage affiliate. That\u2019s something to factor into your decision, but remember that you are ultimately free to choose whichever lender you\u2019d like.<\/p>\n

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Ask your real estate agent<\/b>\n
Your real estate agent is likely well versed on various lenders who have worked with past and current clients and may be able to point you in the right direction.<\/p>\n<\/div>\n\n\n\n

5. Call with questions<\/h2>\n\n\n\n

Once you identify potential lenders, take the time to ask these additional questions to help make sure you\u2019re comparing apples to apples as you evaluate your options:<\/p>\n\n\n\n