Posted on: 06th Nov, 2012 11:01 pm
I am looking to buy my first house. I have some questions and hope someone here can give some suggestion. I want to get a pre-qualification in order to know how much I can afford. But I have heard that it will require a credit check. Will this credit check affect my score? If I get pre-approved by a institution, am I required to use them as a lender?
Hi Wilman,
If the lender goes for a hard credit check, it will have a negative impact on your scores. Your credit scores may get reduced. A pre-approval letter is not a guarantee that you will get qualified for a loan. I don't think it is mandatory to get a loan from a lender who has given you pre-approval.
Take care
If the lender goes for a hard credit check, it will have a negative impact on your scores. Your credit scores may get reduced. A pre-approval letter is not a guarantee that you will get qualified for a loan. I don't think it is mandatory to get a loan from a lender who has given you pre-approval.
Take care
A pre-approval letter does not give any kind of assurance that you will be able to qualify for a loan. Also, it is not necessary that you will have to take out a loan from a lender who has given you pre-approval. If the mortgage lender goes for a hard credit check, it will hurt your credit score to a great extent.
If you get pre-approved for a loan, it does not necessarily mean that you have to take out the mortgage loan from that lender only. You can take the loan from other lender too.