The most common Mortgage Myths #2

Myth #2: “Getting my credit pulled to often can make my credit score
look bad.”
Many people think that having your credit report pulled by several different
companies around the same time will make your credit rating go down.
There was some truth to this years ago, but thankfully finance companies
have woken up to people shopping around for a mortgage.
The old logic was if a person was applying to too many companies for
credit, they were simply running around town trying to get money from
anywhere - possibly even trying to work some type of scam. That used to be
how it was looked at by banks and finance companies. However, lenders
now realize that in this day and age (especially with the internet) it’s
common to shop around for the best rate. This logic doesn’t apply to having
your credit pulled by mortgage companies anymore.
Note: Although it doesn’t hurt to apply to many different lenders for
mortgages anymore, it does still apply to credit cards. The reason is that
now finance companies can see the difference on your credit report from it
recently being pulled by Mortgage Lenders Inc., Home Purchase
Financial, and similar mortgage company type names vs. having your
credit pulled by Mastercard, Visa, and the like.