We encourage the consumer to shop their mortgage, however, we recommend that you maintain control over who you choose to shop your mortgage with instead of who randomly contacts you.
When you apply for a home loan a lender needs to see your credit score to provide an accurate rate quote and a pre-qualification.
Although the consumer has access to a free credit report, the free credit report is not what the mortgage industry uses to price and approve home loans.
The mortgage industry has an industry specific credit report.
The consumer can only get a mortgage specific credit score through a lender.
There are two types of mortgage specific credit pulls to obtain a credit score; Soft Pull and Hard Pull
Both credit pulls give the lender the necessary credit score to price and pre-qualify your loan.
What is the difference between the two types of credit pulls?
A Soft pull is simply a lender examining your credit.
A Soft pull protects your privacy, credit score and data and there is generally no cost to you.
A Soft pull allows a lender answer consumer questions about pricing and general pre-qualifiability.
Before you loan goes to an underwriter a Hard credit pull will be necessary.
Equally important, a Soft pull will not alert telemarketers (see articles below).
A Hard pull indicates you are ready to take action obtaining a loan.
Telemarketers pay the credit bureaus for this information because telemarketers want to know when the consumer is ready to purchase.
Credit bureaus profit from selling your information.
You can Stop the credit bureaus from selling your data and alerting telemarketers.
Again, I encourage you shop your mortgage, however, you can maintain control over who you choose to shop your mortgage with instead of who randomly contacts you.
You must take action to stop the credit bureaus from selling your data for a profit.
The Federal Trade Commission has set up an opt out link to stop aggressive telemarketers from contacting you after a hard credit pull.
Click the link below:
