October 10, 2012
Every time you go into a bank and begin the mortgage process, the lender will inevitably check your credit. If they cannot provide the rate, payment or product your require, you may think to seek mortgage advice at another Institution. STOP! The next Lender will check your credit once again! Some Banks even periodically check your credit for no obvious reason!
Each time your credit report is requested, an inquiry is recorded on your report. This means you are looking for credit, which says to the Credit Bureau that you REQUIRE credit, which in turn lowers your beacon score. The beacon score is the number they put atop your report to let them know how good or bad your credit is, at a glance. Many different elements affect your beacon score, and all hold different weight as deciding factors.
When you go to a Mortgage Broker, they will check your credit once. They can then use that report to shop your file to all the different lenders available to them. This includes nearly all of the major lending institutions, as well as many not-so-major players. The not-so-major players are eager for new business, can offer very competitive rates, or have niche products that might be a better fit for your situation. Most if not all of them are also backed by the Major Institutions, so you can feel secure that they won’t disappear overnight.