03 Jun 2025
By Mark Feder

Will Multiple Mortgage Applications Hurt Your Credit Score?

Mortgage
When you are ready to buy a home, it is natural to shop around for the best mortgage rate and terms. But you may have heard that submitting multiple loan applications can damage your credit score and throw a wrench in your homebuying plans. Here is the truth behind hard inquiries, rate shopping, and how to protect your credit while securing the best deal. Understanding Hard Inquiries vs. Soft InquiriesWhenever a lender runs your credit, whether for a credit card, auto loan, or mortgage, they generate a hard inquiry on your report. Hard inquiries can lower your score by a…
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26 Mar 2025
By Mark Feder

The Difference Between FICO Score and Credit Score: How It Affects Your Mortgage and Rates

Mortgage
When applying for a mortgage, your creditworthiness plays a significant role in determining your loan approval and interest rates. Two commonly referenced terms are FICO score and credit score, which are often used interchangeably but have distinct differences. 1. What is a Credit Score? A credit score is a broad term that refers to a numerical representation of a consumer's credit risk. It is calculated based on various scoring models, including FICO and VantageScore, and is derived from credit report data such as payment history, credit utilization, and length of credit history. 2. What is a FICO Score? A FICO…
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21 Feb 2025
By Mark Feder

How Do Mortgage Lenders Decide How Much You Can Borrow?

Home Mortgages
When buying a home, one of the most critical factors is determining how much you can borrow through a mortgage. Lenders evaluate multiple financial aspects to assess your borrowing capacity. Here’s what they consider: 1. Income and Debt-to-Income (DTI) RatioLenders assess your income to ensure you can afford monthly mortgage payments. A common guideline is that your total housing costs (including principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income. Additionally, your total debt-to-income (DTI) ratio—including credit cards, student loans, car loans, and other debts—typically should not exceed 43% for most conventional loans. A lower…
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13 Feb 2025
By Mark Feder

How Obtaining a Mortgage Can Impact Your Credit Score

Home Buyer Tips
When considering homeownership, many potential buyers wonder: Will getting a mortgage help my credit score? The answer is yes—if managed correctly. A mortgage is a major financial commitment, but it can also be a powerful tool for building and maintaining strong credit. Here’s how a mortgage can affect your credit score and what you should keep in mind. Building Credit with On-Time Payments One of the most significant factors influencing your credit score is payment history. Mortgage payments, like other loans, are reported to credit bureaus. Making your payments on time and in full each month demonstrates financial responsibility and…
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