Will pre-approval hurt my credit score?
A mortgage pre-approval is the first big step to buying your dream home in San Bernardino. A pre-approval boosts the odds of accepting your offer and gives you a detailed quote for your budgeting.
Getting pre-approved makes you a more attractive client to sellers. If a seller receives tons of offers, they will most likely prioritize a buyer who is pre-approved for a mortgage compared to those who aren’t.
But will a pre-approval hurt my credit score? It’ll slightly dent your score, but it’s temporary. Plus, the benefits of getting a pre-approval outshine the slight dip in your score.
Does a Pre-approval Affect My FICO Score?
If you’re applying for a home loan in San Bernadino, you’ve probably heard of a mortgage pre-approval. A pre-approval usually requires a hard credit inquiry, which dents a borrower’s FICO score by five points or less. Although it slightly decreases your score, it plays a vital role in home-buying, and we highly recommend getting one.
Don’t worry about the slight dip in your FICO score because the effects are only temporary. Your FICO score will soon recover if you consistently pay your monthly bills on time and keep your credit card debt low.
Don’t let the slight dent in your score prevent you from getting a pre-approval. The advantages of getting approved, like knowing how much house you can afford, overshadow the negative impact on your credit score.
Benefits of Getting Pre-approved
Help Determine Price Range
Knowing how much house you can afford helps you focus on properties that fit your budget, which helps save time during house hunting. A lender will review your application and inform you about how much they will lend you based on your verified income and assets.
Get in touch with a San Bernardino mortgage broker for assistance if you're ready to get pre-approved.
Better Bargaining Power
A pre-approval letter will increase your negotiating power since real estate agents and sellers know that you have talked to a lender and are a serious buyer.
Faster Closing Time
Getting pre-approved can help speed up the closing process because much of your financial information is already in the lender’s system. This is one of the reasons why famous financial advice personalities highly recommend getting a mortgage pre-approval.
Should You Get a Mortgage Pre-approval?
Getting a mortgage pre-approval is one of the most important steps in the home-buying process. It’s not mandatory, but it shows sellers how serious you are about buying the property. Don’t skip on getting pre-approved, even if a hard credit inquiry could cause a temporary dent in your credit score.
If you’re now convinced to get pre-approved, get started with Rancho Vista Mortgage today.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.