I asked Matt Hodges with Gray Fox Mortgage  a couple simple questions a lot of my buyer clients have, and thought you’d find the answers useful.

When should buyers let their lender pull their credit?

Regardless of when a buyer wants to purchase, if they are serious about building wealth and creating a home, buyers should let a lender soft pull credit after initial conversation.   A soft pull will provide most of what a lender needs for the credit calculation.

Will a soft pull affect their credit score?

A soft pull neither affects score nor is reported as an inquiry. It is the perfect use of credit with an unknown purchase date.

Will a hard pull affect their credit score?

Hard pull “may” affect credit, but with virtually all clients, the soft and hard pull are identical. When borrowers have inquiries for cars, credit cards, mortgages and more, then credit scores can decline. Typically, credit is affected negatively by derogatory events, not inquiries.

What’s the difference between a soft and hard credit score pull?

Soft pull may be used for preapproval/prequalification, but can not be used for underwriting – that must be hard inquiry.

And finally –  how long does pre-qualification last?

Each has a 120 day expiration.