One of the concerns I hear about over and over again from those looking to take out a loan is what will happen to a person’s credit if they apply with more than one lender.

Actually, the Consumer Financial Protection Bureau encourages consumers to shop with at least two lenders so that they can compare terms to make sure they are getting a good deal. As part of that process, the lender will absolutely pull credit, which will create a hard inquiry on your credit report.

“The Consumer Financial Protection Bureau encourages consumers to shop with at least two lenders so that they can compare terms to make sure they are getting a good deal.”

The good news is that the government set up the rules so that any mortgage inquiry made within a 45-day window for that period is treated as one inquiry. This encourages consumers to shop for the best terms and secure their loan before that window passes. After that window passes, however, if you had your credit pulled two separate times, you would have two separate pulls on your report, resulting in a temporary dip. Typically, that dip returns to normal after 12 months.

If you have any questions or concerns about this, please feel free to reach out to me. I would be more than happy to walk you through it.