1

I've just submitted an online application with a lender for a new home mortgage. I know that this lender pulls all of the 3 reports (EQ, EX, TU) and not FICO.

Wondering if I shop around and also apply with other lenders in 14 days from now is going to show up as new inquiries (and hurt my score). I do know that with FICO, I get 14 days to shop around and all inquiries related to Mortgage are counted as one (aggregated). Just wanted to confirm if the same rule is applicable wit EQ, EX and TU.

1

Mortgage companies pull an aggregate report called an RMCR that is like a regular credit report but nicely puts all three reports together and it will show 3 credit scores. Typically mortgage brokers will take the middle score when determining eligibility.

You will see inquiries from another company on your credit report. However, the FICO scoring model should take these inquiries into account when shopping around so it won't have the same effect as if you were to apply multiple times for credit over a longer period such as few months. If you request a credit inquiry, wait say three months and then do another one, then it will have a greater, but not that much, impact on your credit report.

That being said, inquiries are not counted as high on your credit report as utilization. When applying for a mortgage, you should have a minimal number of inquiries over the past year. Inquiries will stay on your report for two years but typically only inquiries in the past year will have a significant effect on your credit rating.

Read more here: https://www.mint.com/blog/credit/what-is-a-residential-mortgage-credit-report-072012/

  • You mentioned "the FICO scoring model". So does the same rule apply to the 3 credit agencies? As you said that RMCR is pulled, will another RMCR pulled within 14 days from the first pull be counted as a new pull or as an aggregate? – user6123723 Jul 11 '14 at 0:39
  • The scoring model will take that into account and you won't lose as many points like if you spaced out inquiries over months – Brian Jul 11 '14 at 0:41

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.