Heard something interesting today—apparently, lenders can tell when you're shopping around for loans by checking your credit inquiries. Didn't realize they could track that closely...makes me wonder how much it actually affects the rates they offer. Anyone know more about this?
Yeah, they definitely notice when you're shopping around, but it's not as bad as it sounds. From my experience, multiple inquiries within a short period (usually 14-45 days depending on the scoring model) count as just one hit. I refinanced a property last year and must've checked rates with half a dozen lenders—barely affected my credit score or the offers I got. So don't stress too much... lenders expect you to shop around, it's part of the game.
Yeah, that's mostly true... but keep in mind it depends on the scoring model used. FICO 8 and 9 usually group inquiries within 45 days, but older models might be stricter. Just something to consider if your lender's using an older system.
Good point about the older scoring models—they can be a real pain sometimes. I've seen folks get caught off guard because they assumed all their rate shopping would count as one inquiry, only to find out their lender was still using an older FICO version. Happened to my brother-in-law when he was mortgage shopping last year. He thought he was safe doing multiple inquiries within a month, but his lender was running an older model and dinged him for each one separately. Not a huge drop, but enough to bump him into a higher interest bracket.
Honestly, your best bet is to ask upfront which scoring model your lender uses. Most reputable lenders won't mind telling you, and it can save you some headaches down the road. Better safe than sorry, especially if you're on the edge of qualifying for better rates...
