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Will Multiple Mortgage Applications Hurt Your Credit Score?

June 3, 2025 by Kay Monigold

When you are ready to buy a home, it is natural to shop around for the best mortgage rate and terms. But you may have heard that submitting multiple loan applications can damage your credit score and throw a wrench in your homebuying plans. Here is the truth behind hard inquiries, rate shopping, and how to protect your credit while securing the best deal.

Understanding Hard Inquiries vs. Soft Inquiries
Whenever a lender runs your credit, whether for a credit card, auto loan, or mortgage, they generate a hard inquiry on your report. Hard inquiries can lower your score by a few points and typically stay on your report for up to 12 months, but they fade after about two years. Alternatively, if you check your own credit or prequalify through some websites that promote no affect to your credit score, it will generate a soft inquiry and will not affect your score.

Rate Shopping Grace Periods
Credit scoring models from FICO and VantageScore recognize that savvy borrowers comparison-shop for the same type of loan. To prevent penalizing you for smart shopping, they group multiple mortgage (and auto) inquiries within a short window, usually 14 to 45 days, and will count them as a single inquiry. This means you can apply to several lenders within a couple of weeks without a significant hit.

  • FICO: 14-day window for newer models; 45 days for older versions.
  • VantageScore: 14-day window across all versions.

How Much Will Your Score Drop?
You can expect a single hard inquiry to typically cost you 5–10 points on a FICO score. If you keep all your mortgage applications within the allowed window, they will count as one inquiry and only incur that initial drop. If you miss the 14-day window applying for several loans over a 2-month period, you can expect it to trigger multiple inquiry hits, intensifying the effect.

Keep in mind that there are other factors that will play into this like credit utilization, payment history, length of credit history, and more that will carry more weight than a handful of inquiries. If your overall credit profile is strong, a temporary 5–10 point drop will not usually affect the outcome of the loan.

Best Practices for Mortgage Shoppers

  1. PreQualify First: Work with a mortgage professional that uses soft pull prequalification tools to see your likely rates without affecting your score.
  2. Apply Quickly: Have a plan in place to aggressively shop within a two-week span to bundle inquiries into one.
  3. Check Your Credit: Review your credit report before applying to correct any errors (e.g., misreported late payments, incorrect balances, accounts that you do not recognize, etc.).
  4. Mind Your Other Credit: Avoid opening new credit cards or taking out auto loans during this window; they generate hard pulls too. It’s best to refrain from any purchases during the approval process.
  5. Lock in Your Rate: Once you find a competitive offer, lock your rate to avoid having to re-apply and ensure your hard inquiry clock stops.

Multiple mortgage applications will hurt your credit if they are spread out over too long a period. By focusing your shopping within the 14-day window, you will only face a single, minor score dip. Pair smart timing with a strong credit profile, and you can secure the best mortgage deal without sacrificing your score.

Filed Under: Mortgage Tagged With: Credit Score, Home Buying, Mortgage Tips

Sweet Loans for Every Taste: Which Mortgage Treat Is Right for You?

May 29, 2025 by Kay Monigold

Let’s face it, picking the right mortgage can feel overwhelming. But what if we made it more fun? Think of home loans like candy bars: each one has a distinct flavor, a specific audience, and its own perfect time and place. Whether you’re buying your first home, building your dream house, or tapping into retirement equity, there’s a mortgage match made just for you.

So let’s have a little fun with this sweet comparison…

FHA Loan – Milky Way
Smooth, classic, and made for first-timers.
FHA loans are the Milky Way of the mortgage world, soft, reliable, and oh-so-comforting. Designed for buyers with lower credit scores or smaller down payments, they’re ideal for those just starting their homeownership journey. With as little as 3.5% down and more lenient qualification standards, FHA loans are the classic comfort treat that helps many get a taste of homeownership.

VA Loan – PayDay
Salty, sweet, and packed with benefits for our heroes.
Just like a PayDay bar, VA loans combine rich rewards with a solid core. Exclusively available to eligible veterans, active-duty service members, and some surviving spouses, these loans offer zero down payment, no private mortgage insurance (PMI), and competitive interest rates. It’s a well-deserved treat for those who’ve served.

USDA Loan – 3 Musketeers
Light, fluffy, and built for the rural dream.
USDA loans are like the airy 3 Musketeers bar, light on the budget, heavy on the benefits. Designed for eligible rural and suburban areas, these loans offer no down payment and low interest rates, making them ideal for buyers dreaming of more space and a slower pace.

Conventional Loan – Snickers
Tried and true. Satisfies almost every situation.
You can’t go wrong with a Snickers, and the same goes for conventional loans. Whether you’re a seasoned buyer or refinancing, conventional loans are flexible, widely accepted, and perfect for those with strong credit and stable income. They’re the all-around winner that works for most situations.

Non-QM Loan – Twix
A little unexpected, flexible, and full of surprises.
Non-QM (Non-Qualified Mortgage) loans are for the out-of-the-box borrowers. Like a Twix, they offer a bit of a twist, great for self-employed individuals, investors, or anyone with unique financial documentation. They aren’t bound by traditional rules but still satisfy your financing needs with flair.

1099 Loan – Butterfinger
Crunchy and built for self-employed hustlers.
Independent contractors and gig workers, this one’s for you. Just like a Butterfinger, a 1099 loan has that extra crunch and texture—meant for those who don’t fit into W-2 boxes. If you’ve got income from contracts, freelancing, or side hustles, this loan keeps things sweet and flexible.

Bank Statement Loan – Hershey’s Cookies ‘n’ Creme
Smooth but with all the necessary chunks (of proof!).
Forget pay stubs, bank statement loans are here for the entrepreneurs and business owners who prove income through deposits. Like a Hershey’s Cookies ‘n’ Creme bar, it’s a smooth solution with bits of evidence baked in. This one’s all about showing your worth in your own unique way.

Reverse Mortgage – Werther’s Original
Classic, comforting, and perfect for the golden years.
Just like those timeless golden candies, reverse mortgages are made for homeowners 62 and older who want to tap into their home’s equity without leaving the house they love. It’s about adding sweetness and security to retirement with no monthly mortgage payments.

Construction Loan – Kit Kat
Break it down, build it up, layer by layer.
If you’re building a home from the ground up or taking on a major renovation, the construction loan is your Kit Kat. It’s structured, strategic, and all about financing your home in phases. With each stage of building funded in steps, this loan breaks down big dreams into manageable bites.

Find Your Flavor, Find Your Fit
Just like your favorite candy bar, the best loan for you is the one that suits your unique tastes, lifestyle, and goals. Whether you need something soft and simple or layered and bold, there’s a mortgage treat waiting to be unwrapped.

Let’s talk sweets… I mean, solutions! 🙂

Message us anytime, and let’s find the right loan to satisfy your homebuying cravings.

Filed Under: Mortgage Tagged With: Loan Flavors, Mortgage Humor, Mortgage Made Fun

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Our Team

Kay MonigoldKay Monigold
Owner/Mortgage Broker/Residential Mortgage Loan Originator
NMLS#1086176

Steven LoweSteven P Lowe, Sr
Residential Mortgage Loan Originator
NMLS #1085638

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