Tips for mortgage prequalification | prequalification for a mortgage

Its very important to know mortgage prequalification status . It is a normal thing to be tempted to  prequalify  with more than one lender while you are searching for the best home loan terms. There is nothing wrong here, but you have to be careful from many reasons. A home loan prequalify can help you buy easily your dream house but, you have to keep in mind that too many pre-qualifications can damage your borrowing money power.
Credit score details.
Credit score details.
Every time you will apply for a home loan prequalification, your lender will carefully check your history in this domain. These checks turn up as enquiries on your credit report, which is asserted by the three main credit reporting agencies: Experian, Equifax and Trans Union.

Many lenders rely upon their own FICO scores or credit scoring systems, when they are trying to determine your credit worthiness. The FICO scores are numbers tabled using software developed by Fair, Isaac & Company Inc. this score can be affected seriously by the number of credit inquiries made until that moment. This information have been recently released by Fair, Isaac and Company Inc. after what many customers that wanted to obtain a home loan prequalification or a mortgage made pressure on them to show to the large public how this software works.

According to Fair Isaac, the more inquiries are on a borrower’s credit file, the more probable it is that the borrower to not be able to pay his bills. The problem comes when many people are trying to obtain more than once a home loan prequalify while they are shopping for new homes, generating by this a lot of inquires on their credit report file.

Also, Fair, Isaac and Company Inc. introduced a new policy which is helping the new customers to get easier a home loan prequalification. Allotting to the policy, Fair Isaac’s software will brush aside all auto or mortgage related enquiries that will come within a thirty days period prior to the date the credit score is tabled. Only one enquire will be considered for every fourteen days prior to this thirty days period, no matter how many enquiries were made throughout a particular two weeks period.

The best news in all this is that, the enquiries have a relatively small impact over your credit score report file. There are other things more important when you prequalify home loan, like late credit payments or high debts. Yet, it is probably best to not prequalify for a home loan on every website more than once a month since there is a high chance to hurt your credit score easily.

if anyone carefully follow the   mortgage prequalification tips then can save and get home loan quick and easy.