Get the letter right before you make the offer
Preapproval and your credit score
Desk answer
A prequalification often uses a soft check that does not affect your score. A preapproval usually uses a hard inquiry, which can lower a score slightly for a short time. Credit scoring models generally treat several mortgage inquiries in a short shopping window as a single inquiry, so comparing lenders close together costs little.
Last reviewed against the primary sources listed below.
Soft and hard inquiries
| Type | Used for | Effect on score |
|---|---|---|
| Soft | Many prequalifications, your own checks | None |
| Hard | Most preapprovals and applications | Usually small and temporary |
Shopping without penalty
The CFPB encourages comparing offers and explains that multiple mortgage credit checks within a short window are typically counted as one. Keep your shopping close together.
Ask before they pull
Each lender has its own process. Ask whether a hard pull is part of their preapproval before you hand over your information.
Questions buyers bring to the desk
Does prequalification affect your credit?
Usually not. Many prequalifications use a soft check or no check at all. Ask the lender to be sure.
Does mortgage pre-approval affect credit score?
Usually a little, briefly, because most preapprovals involve a hard inquiry. Several mortgage inquiries in a short shopping window are generally counted as one.
Is there a downside to getting pre-approved for a mortgage?
The main cost is a hard inquiry and the time to gather documents. The upside is finding problems before you make an offer.