Happy Friday – I hope you are doing well. For this week’s video I want to discuss when you should use a soft credit pull vs. a hard credit pull. I have spoken to several people who want to buy next year but are scared to call a lender because they don’t want to ding their credit. This is the perfect scenario for a soft credit pull. On the same note, I have spoken to several people who are trying to make offers based on a soft credit pull and that does not work in our current market. Please see below for when to use both options.
Soft Credit Pull – This allows a lender to see your credit score and debts without hitting your credit. However, it does not allow them to provide a pre-approval letter. The best use of a soft credit pull is for when you are buying 6+ months out. It will allow the lender to make sure you don’t have any qualification issues and help you start to set your budget. This will put you in a position to be prepared once you are within the 4-month time frame of buying a home.
Hard Credit Pull – This allows the lender to pull your credit and provide you with a pre-approval letter. The pre-approval letter lets the seller know the lender has reviewed your credit, income and assets and puts you in a better position to win your offer. To finalize your pre-approval, you should complete a hard credit pull at least 2 weeks prior to looking at homes. Once credit is pulled, it is good for 120 days.
Reach out to us if you’d like to discuss your particular timeline!
Cornerstone Mortgage Group
Georgia Residential Mortgage Licensee: 21412 • Company NMLS: 147913 • Individual NMLS: 147938