Protect your Credit Score when Shopping for a Lender

Multiple credit inquiries can lower your credit scores. But when you’re shopping for the best mortgage-lender, each of them will want to do a credit check.

As long as mortgage lender inquiries are made within a 45-day window, though, there’s no need to worry.  They’ll be lumped together by FICO and treated as one.  Furthermore, any credit checks made within the 30 days prior to that window do not count at all.  

Keep in mind that some mortgage lenders use an old version of the FICO formula with a 14-day (instead of the 45-day) window.  To be on the safe side, try to get all your mortgage shopping done within those 14 days.

Known as “de-duplication,” this FICO formula works for only three categories of borrowing:  student loans, auto loans, and mortgages.  Just watch your window and you’ll be fine.

For more information, read Liz Weston’s complete article in the LA Times: