Can Pre-Approval Affect Credit Score?

Usually when people are looking to buy a new home they will make enquiries with numerous lenders in order to find the one that fits all their requirements. Although it is due diligence to explore your options, it is advisable to avoid putting in formal applications with too many lenders at once.

• A pre-approval issued by a bank prior to you finding a property; it’s issued so that you are aware of your capacity to borrow prior to putting a formal offer on a property.
• Usually when people are looking to buy a new home they will make enquiries with numerous lenders in order to find the one that fits all their requirements. Although it is due diligence to explore your options, it is advisable to avoid putting in formal applications with too many lenders at once.

• Most lenders understand that when you are trying to get a new home loan, it is only reasonable to expect that you will make enquiries with more than just one lender.
• It is important however to be aware that these will appear as credit enquiries within a short period of time and may indicate to the lender that you are receiving negative outcomes from these lenders, though that may not be the case.
• Using one of our mortgage experts may be what save your credit; this is because we will compare lenders for you; based on your specific needs and then present you with the select few best options, therefore limiting the number of applications that is made with different credit providers.

When you apply for credit through a provider, the lender will be able to see the following;

• The date you made the enquiry.
• Who you made the enquiry with.
• The loan amount.

A poor credit score can have great bearing on whether you will be successful in applying for a loan; one of our experts can ensure you are getting the best deal from the best lender, without putting your credit score at risk. Give us a call today and let us explore the options with you!