A loan pre-qualification early in the home buying process gives buyers time to resolve challenges that could impede getting an offer accepted and closing on a home loan. A common hesitation is the potential negative impact of a “hard” credit inquiry, especially if they plan to shop around. Enter the “soft pull” option by Fairway for early pre-qualification.
Benefits of a Soft Pull versus a Hard Pull
- No Impact on Credit Score: Beneficial for those shopping for other goods and services involving credit inquiries and those working to improve scores.
- Credit Privacy: Allows time for registrations at Opt Out and Do Not Call to be fully processed before a necessary hard pull, avoiding the dreaded barrage of calls and emails the credit bureaus’ practice of selling trigger leads generates.
- Complimentary for Fairway Clients: Pre-approvals including the soft-pull credit assessment are available to all Fairway clients at no charge.
- Planning Optimizes Rate and Qualifying: Credit score is a snapshot of how a borrower manages debt. Assessing credit early offers time to optimize score and position borrowers for the best rate and term home loan available at time of formal application.
Consumer vs. Mortgage Credit Score
Applying for a home loan takes a deeper dive into more facets of a borrower’s ability to meet financial commitments than most consumer related inquiries and scores can only be improved through strategic diligence in adhering to practices that build credit confidence. Historically this view could only be obtained with a hard pull, polling all three credit bureaus with the median score used for qualifying. Excessive hard pulls can erode credit scores and flag lenders you are shopping funding sources signaling you could be short on cash. Fairway’s soft pull gets your home loan process started with no downside impact to credit score.
What’s In a Soft Pull
- A soft pull provides credit score and tradeline information sufficient to estimate qualifying.
- A soft pull does not display any outstanding judgements or liens that could impact the ability to close on a home loan.
