Getting a mortgage broker, banker or mortgage specialist to check your credit score can lower it. Get any of them to check it within days of each other and watch your score drop like a rock. Most people don’t know that the more often your credit is checked the lower your score will be. This is because the scoring system assumes that you are being declined every time you get your credit checked when in reality you could simply be looking for a good deal. If your credit score falls too far then you may find yourself paying higher interest rates for your financing or you may not have any financing available to you.
I tell people to check their own credit and then to forward their credit report to me so that I can take a look at it and tell them whether it is good or which items need to be addressed. By checking your own credit you can save your credit score as it does not go down when you check it. If I check it, then a bank checks it and maybe another broker you can be assured that the score will expotentially go down.
Any mortgage broker, banker or mortgage specialist should be able to look at your credit report and tell you what kind of financing will be available – traditional, mid market or private. They don’t each need to check your credit to help you understand your options.
As most people have never seen their credit report I find it amazing that they decide to purchase a property and have no idea what their credit looks like. Be a prudent borrower and check your credit before you go shopping and save your credit score. Whether you are applying for a residential or commercial mortgage or a business loan you should have a copy of your credit report that you control that others can see with your permission – all without decreasing your credit score.
Click here to access a copy of your credit report.