The Role of Credit Inquiries in Mortgage Approval
When preparing to apply for a mortgage, it is important to understand how credit inquiries can impact your chances of approval. Lenders use your credit report to assess risk, and every inquiry can play a role in how they view your financial stability. By knowing the difference between soft and hard inquiries, borrowers can make smarter decisions and protect their credit scores during the home buying process. Soft vs. Hard Credit InquiriesA soft credit inquiry occurs when a lender or other company checks your credit for informational purposes. Examples include checking your own credit report, pre-approval offers, or background checks…