Does your credit report score go down each time a bank/lender checks your credit report?
by Mortgage Rates on Friday, September 24th, 2010 | 8 Comments
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yes, rates are higher now because of everything that is going on in the banking industry. If you are buying a house please check out this website http://www.freeyourselfofdebt.com This will help you eliminate your mortgage as fast as possible and save you thousands and thousands of dollars in interest. Even if you have what seems to be a high rate this will take care of it
Everytime your credit is checked it affects your score. You do have a “door” of credit checks to be done, for situations like your own. Like on a house 30 days, a car like 10 days, that they wont count against you. Just ask.
yes it goes down with every credit check
National
mortgage rates
11/25/2008 6:10:48 AM
30 Yr Fixed5.99%
15 Yr Fixed5.67%
30 Yr Fixed Jumbo7.36%
15 Yr Fixed Jumbo6.47%
It doesn’t matter how many other times you apply for a loan during a 30 day period as long as it’s for the same kind of transaction inquiry (home loan). Now one thing to keep in mind: the same bank that “approved” you for the laon, will probably run your credit again prior to closing on the mortgage. So don’t celebrate after you hear a yes on the phone by going out and financing a car. That will lower your score. Just don’t open any new lines of credit until you’ve signed for the house.
An inquiry will lower your score by a couple of points. See the link regarding how your score is computed. Closing costs are negotiable between you and the seller but in the end you pay them no matter what because they are in the price of the house if the seller pays them. Interest rate will depend on your credit score as well as on the amount of the down payment and the type and length of the loan and how many points you will pay. They also vary depending on the your local housing market and which state you live in. There are loans available at less than 6.5% but that may be a good rate in your situation. I don’t think you can do much better for a 30 year fixed rate with minimum (10%) down. Try to put down 20% to avoid the Private Mortgage Insurance (PMI). How much is your broker charging either you or the institution he is getting the loan from? Brokers don’t work for free and they don’t all charge the same commission. Their commission is also in the loan.
JD, you need to understand, there are costs associated with purchasing a home. There are a lot of people behind the scenes working hard to put the paperwork together to make this work for you!
If you don’t have the money to pay for them, then you aren’t really ready to purchase a home. And to answer your question, yes it affects your score.
No, it does NOT go down with every credit check. Credit bureaus will lump similar inquiries within a defined time frame together as one inquiry. So, if you were buying a car and went to 4 car dealers over a weekend and each pulled your credit, that would count as 1 hit.
On the other hand, if you went out one weekend and stopped at one car dealer, then applied for a credit card, then went to Sears and applied for a line of credit to buy some appliances, and applied for a job that required a credit check, you would have 4 hits on your credit.
Or if you visited one car dealership today, another in 2 months, another 2 months after that, and another after another 2 months, that would be 4 hits.
But a grouping from the same sort of business within a limited time frame is just a single hit.
As for the rate you’re being quoted, rates are jumping around. Right now, with good credit, they’re in the high 5s to low 6s. So you may be able to do slightly better. Work with your mortgage broker; he’ll have access to a lot of programs and should be able to tell you when he sees a dip that you can take advantage of.
Hope that helps.
Whether or not your rate is too high depends on whether or not you expect your broker to work for free. Is he charging you an origination fee? There is no way you will get out of paying the upfront MIP on an FHA loan which is financed in the loan so deal with it.
This is not 2000 – 2006 when money was cheap and demand for housing was at an all time high. Banks are loosing BILLIONS of dollars every quarter due to mortgage default so I would expect the costs to go up for the foreseeable future. Banks are losing money and closing fewer loans so how else are they going to stay in business? I have already noticed that appraisers are charging more for their services.