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Lumping hard pulls together (Pre-approval for mortgage, loan refinance, new cc)

Home Mortgages and Home Buying Lumping hard pulls together (Pre-approval for mortgage, loan refinance, new cc)

  • Avatar drinvest 
    Participant
    Status: Dentist
    Posts: 11
    Joined: 10/19/2017

    I am at a stage that a lot is starting to happen and while my credit is fairly good (810+), I want to do everything I can to keep it that way so that I can get the best rates on any loans/refinances. I have a few things coming up that will likely all occur in this order.

    1)Mortgage Pre-Approval: I’m hoping to have this done this week.

    2)Loan refinance: Hoping to have this done this week. My % right now is too high and I can get it a solid 1.6% lower by doing this.

    3)New Credit Card: Hoping to have this done this week (need a new joint CC with wife since we don’t have one). I do not care at all about the APR since I never have a balance on CC’s.

    4)Actual Mortgage: Hopefully within 6 months

    5)Buying a Practice (at least a portion): Hopefully within the next year. It probably would be optimal to actually buy the practice first, but I have heard it can be hard to get a mortgage for 2 full years after a purchase which is less than ideal.  The way things are working out, buying a house is much more likely for my family before purchasing the practice. I do know this is the area I will be for the long term, so that portion isn’t an issue.

     

    I have heard that if you do hard pulls within a month or so of each other that it affects your credit as 1 pull, but is that only hard pulls from 1 time (so many different pre-approvals) or would that include all hard pulls within a month like pre-approval+loan refinance+new credit card? My main worry is that I’m going to do all of this and while 1 hard pull likely doesn’t matter, 3 may shoot my credit down to the point of me not getting the optimal rates on something like my mortgage or even a practice in many months (granted, I don’t think if I buy a practice in 8 months or so these hard pulls would be affecting it at that point, instead me having a mortgage in general would probably affect that more).

     

    Any suggestions on the way to go about these and in what order(mainly the first 3, all of which I need to do soon)? Will it really affect much in terms of my rates or am I overanalyzing it by trying to optimize it?

     

    Thanks

     

     

    #188518 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3071
    Joined: 09/18/2018

    Looks like preapproval is soft.

    https://creditcards.usnews.com/articles/the-difference-between-hard-and-soft-credit-inquiries.

    Items 2-5 will be actual loans so they will impact it.

    #3 Add your wife to the existing, don’t apply new. Actually, make ALL joint, it’s going to show more available that way. Don’t close anything.

    #188524 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1316
    Joined: 02/15/2016

    You’re overanalyzing it.  In 2017 alone, I refinanced my student loans twice (both times applying to every student loan bank I could find), got pre-approval on a house, and then applied with about 14 different mortgage companies near closing.  The hit to my credit score was negligible.  Just stay above 740.  There’s no significant difference between 770 and 850 credit scores.  It’s not really a linear scale.

    #188532 Reply
    Liked by Peds, Tim
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3071
    Joined: 09/18/2018

    Jhwkr542 bunched:
    Credit cards counted as one.
    Mortgage counted as one.
    Preapproval as zero.

    #188543 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4442
    Joined: 01/08/2016
    or am I overanalyzing it

    Click to expand…

    that.

    its a non issue.

    #188547 Reply
    Liked by Craigy
    Avatar HandFellow 
    Participant
    Status: Physician
    Posts: 201
    Joined: 01/18/2016

    I would do credit cards after all the important stuff if you want to get some new cards.  I went through a mortgage application right after some credit card applications.  It didn’t do much to my score, but it definitely through them off a bit and made them ask more questions.  just wait a bit longer.

     

    #188692 Reply
    Craigy Craigy 
    Participant
    Status: Spouse
    Posts: 2058
    Joined: 09/16/2016

    Hard pulls are just not that big of a deal.

    Having lots of debt, poor debt-to-income, high utilization ratios are the big deals.

    LEVEL 1 WCI FORUM MEMBER.

    #188991 Reply
    Avatar EMPAC623 
    Participant
    Status: Advanced Practice Provider
    Posts: 28
    Joined: 11/15/2018

    They say they lump as one but I can show you my credit karma screen shot of 5 pulls from same finance place in 45 days lol

    #188996 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3071
    Joined: 09/18/2018
    They say they lump as one but I can show you my credit karma screen shot of 5 pulls from same finance place in 45 days lol

    Click to expand…

    Of course the detail shows, but you don’t know how they were counted in the credit scoring. By the way, scoring for mortage, credit cards, insurance, consumer debt are all different and proprietary. Don’t try to figure it out.

    #189021 Reply
    Liked by Craigy

Reply To: Lumping hard pulls together (Pre-approval for mortgage, loan refinance, new cc)

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