January is a month of getting things in order, AZM can make this year’s mortgage process smoother and stress-free. How, you ask? Let’s start with a little resolution that’s a game changer for anyone looking to buy a home: No hard pull right away!
If you’ve been through the mortgage prequalification process before, you probably know the drill: you’ll provide your credit information, do a check, and boom — hard pull. In some cases, it could impact your credit score for a little while. However it’s important to note, you don’t need to dive into that hard pull from the get-go.
This year, let’s keep it simple and start with a soft pull. So, what exactly does that mean, and why should it matter to you?
What’s the Difference Between a Hard Pull and a Soft Pull?
A hard pull is what most people think of when they hear “credit check.” It’s a comprehensive look at your credit history and can temporarily lower your credit score by a few points. It happens when you’re applying for something like a mortgage, a car loan, or a credit card. While it’s a necessary part of the process for lenders to assess risk, it doesn’t need to happen at the beginning of your mortgage journey.
A soft pull (also known as a soft inquiry) is a more casual review of your credit. It doesn’t affect your score and provides just enough information for us to get an idea of where you stand. Think of it like a quick maintence check to see areas of improvement.
Why Not Just Skip the Hard Pull at First?
You don’t need that extra stress on your credit score when you’re simply exploring your options. Instead, starting with a soft pull helps both you and your lender better understand what’s going on with your credit and whether it’s worth proceeding to the next step.
Additionally, a soft pull doesn’t leave any lasting marks on your credit report. So, even if you’re still deciding on which lender or loan type is the best fit for you, you’re not taking any unnecessary hits to your credit score along the way.
What Happens When You Do a Hard Pull?
Now, if you’ve found a lender you’re ready to work with and you’re ready to roll, then a hard pull will be required. That’s when the more detailed credit report review happens, and yes, it may temporarily lower your score. The good news is that, unlike a soft pull, hard pulls usually only affect your credit score by a few points — and once you’ve secured your mortgage, that impact is behind you.
What Does This Mean for You?
Simply put, by skipping the hard pull at the start, you get to explore your options without worrying about your credit score taking a hit. You’ll have a better sense of your budget, loan options, and what you’re eligible for — and only once you’re ready to move forward will we need to do the full credit check.
This year, let’s make the mortgage prequalification process as smooth as possible. We’ll avoid any unnecessary credit score damage and keep things on track for getting you into your new home — without the stress.
