What happens when a mortgage lender checks my credit?

Short answer

A lender's credit check is reported as an inquiry and typically has a small negative effect on your scores. Multiple mortgage inquiries within a 45-day window are recorded as a single inquiry. Checking your own credit does not affect your scores.

Full explanation

When a mortgage lender checks your credit, the credit-reporting companies record an inquiry. Inquiries can be seen by other lenders and typically have a small negative effect on your scores because they signal that you may take on new debt. You cannot avoid inquiries entirely when you apply for a mortgage.

Mortgage shopping is treated differently. Credit-reporting companies collapse several mortgage pulls into one inquiry when they occur inside a 45-day span. The score effect does not grow with each extra mortgage lender inside that span. You can obtain multiple preapprovals and Loan Estimates in that window. An extra inquiry after the window still has a small effect.

A new card, auto loan, or similar non-mortgage application creates its own inquiry, so the CFPB suggests waiting until after the mortgage process. Pulling your own report or scores is not treated as a lender inquiry and does not move the scores. If you have not already reviewed your report for errors, the CFPB says you can obtain a free copy and correct mistakes.

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