Fair point, but honestly the credit hit from rate shopping is usually pretty minor. Most scoring models lump mortgage inquiries together within a short window (like 2-4 weeks), so it's not like each lender tanks your score individually...still worth being cautious though.
That's true, but I'd still be careful about timing. Even though the scoring models group mortgage inquiries together, there's a bit more nuance to it. Here's how I'd approach it step-by-step:
First, before you start rate shopping, make sure your credit is already in decent shape—pay down balances, avoid new credit lines, etc. This gives you a buffer in case of minor dips.
Second, keep your shopping window tight—ideally within two weeks. Most scoring models like FICO treat multiple mortgage inquiries within this period as a single inquiry. But some older or less common scoring models might use slightly different windows (like 30 days), so shorter is safer.
Third, monitor your credit closely during this period. Use free tools like Credit Karma or your bank's credit monitoring service to see what's happening in real-time. If you notice anything unexpected, you'll be able to address it quickly.
I remember when I bought my first home, I was paranoid about inquiries tanking my score...turned out it barely budged. Still, better safe than sorry, right?
Totally agree with keeping the shopping window tight—learned that one the hard way. Funny enough, when I refinanced, I obsessed over inquiries too...turns out my score dropped more from a random forgotten store card balance than from mortgage shopping. Lesson learned, I guess.
Haha, yeah, been there with the random store card balance...those sneaky little balances can really ding you more than you'd think. Couple things I've picked up along the way:
- Definitely agree on not stressing too much about multiple mortgage inquiries within a short period. Credit bureaus usually get that you're rate shopping and treat it as one hit.
- But man, those forgotten small balances—like the $25 you left on that random card you opened for a discount—can really sneak up on you. Had one myself from a furniture store card I totally forgot existed.
- Another thing people overlook is utilization ratios. Even if you're paying everything off monthly, if your statement closes with high usage, it can temporarily hurt your score. Learned to pay mine down a few days before the statement closes...made a noticeable difference.
- Also, quick tip: double-check your credit report regularly. Found an error once from someone else's account mixed into mine—gotta love the credit bureaus' attention to detail...
Anyway, live and learn, right?
Good points on utilization—caught me off guard too when refinancing. Thought I was good because I paid balances monthly, but didn't realize timing mattered that much. One thing I'm curious about... has anyone noticed if closing unused store cards actually helps or hurts your credit long-term? I've heard mixed advice—some say close them to simplify, others warn it could shorten your credit history. Seems like a balancing act.
