Does getting preapproved for a mortgage hurt my credit?
A preapproval may involve a credit inquiry; ask the lender which type it will use.
A mortgage preapproval may involve a credit inquiry, and a hard inquiry can affect a credit score.
Some lenders may begin with a soft inquiry, while others use a hard inquiry for preapproval, so the process is not identical everywhere.
Ask the lender what type of inquiry will be made, when it will occur and what information will be reviewed.
Hard and soft inquiries
A hard inquiry is associated with seeking credit and can be visible to other lenders. A soft inquiry generally does not affect scores in the same way. The lender can explain its process.
Mortgage shopping receives special treatment
Credit-scoring models can group qualifying mortgage inquiries made within a shopping window. The details depend on the scoring model, so focus your comparison activity and rely on current guidance rather than assuming every score behaves identically.
Credit is only one part of preapproval
The lender may also review income, debts, assets and documents. Avoid opening unnecessary new credit or making unexplained financial changes during the process.
Questions worth asking
- Will this be a hard or soft inquiry?
- When will you pull credit?
- Can I review options before a hard inquiry?
- What documentation is needed for the preapproval?
Prepare before the lender conversation
Buyer Checkpoint helps organize factors that may shape a homebuying conversation, including down-payment thinking, timeline, credit range, income stability, lender status and other readiness factors.
Buyer Checkpoint is informational and is not a mortgage application, preapproval, underwriting decision or guarantee of financing.