Unlocking Mortgage Options With a Soft Credit Request & Review

When it comes to reviewing your mortgage options & getting pre-approved, the last thing you (or your clients!) want to hear is that your credit will undergo a “pull.” It can sound awfully invasive and intimidating! And oftentimes, leaves you worried about the potential impact on your credit score.

Let me introduce you to a much friendlier term: the “soft credit request & review.” This approach can put your mind at ease and help you explore options – without the stress!

So what is a soft credit request and review?

This is also known as a soft inquiry or soft credit check. It’s a method used by lenders and creditors to access your credit report for informational or promotional purposes. Unlike its intimidating cousin, the hard credit pull, a soft credit pull request & review offers several advantages.

Here’s the difference between a SOFT credit request and review & a hard credit pull:

Soft Credit Request & Review:

1. Provides an overview of your credit history without affecting your credit score (examples: when you check your own credit report, receive pre-approval offers for credit cards or loans, or when employers do background checks.)
2. No impact on your credit score! The beauty of a soft credit request and review is that it remains invisible to other creditors and lenders when they review your credit report.
3. Permission: While most soft requests can be made without your explicit permission, some may require your consent (such as when a landlord or employer wants to review your credit history).
4. Duration on credit report: Soft inquiries are usually not listed on your credit report at all, or if they are, they are only visible to you and do not impact your credit history.

Hard Credit Pull:

1. Hard credit pulls, on the other hand, are typically used by lenders and creditors when you apply for a new credit card, loan, or most notably,  a mortgage.
2. Impact on Credit Score: Hard credit pulls can have a negative impact on your credit score. Each hard inquiry can lower your score by a few points, and they remain on your credit report for up to two years. Multiple hard inquiries in a short period may indicate to lenders that you're seeking credit frequently and could be a higher risk.
3. Permission: You MUST explicitly grant permission for a lender or creditor to do a hard credit pull as part of your credit application process.
4. Duration on credit report: Hard inquiries on your credit report are listed for up to two years, but their impact on your credit score does diminish over time.

The key difference between a soft credit request & review – and a hard credit pull lies in their PURPOSE and IMPACT on your credit score.

Soft credit requests are designed for informational purposes and leave your credit untouched, while hard pulls are reserved for credit applications and may lower your score.

Knowing which type of inquiry is being used while accessing your credit report is CRUCIAL, as it allows you to make informed decisions about your financial future! Regularly monitoring your credit report for accuracy is also a wise practice to familiarize yourself with.

When it comes to exploring your mortgage options, rest assured that a soft credit request and review can provide the information you need without any unnecessary credit score worries.

Your journey to homeownership just got a lot less stressful!

Let’s go!