When starting the home loan process, one of the most common concerns among buyers is how a mortgage preapproval will impact their credit score. At Fairway Independent Mortgage Corporation, we prioritize your financial well-being and privacy. That’s why we use a strategic approach to credit inquiries—leveraging soft credit pulls when possible to minimize the impact on your credit score and prevent your information from being sold to telemarketers.
Understanding the Difference: Soft vs. Hard Credit Pulls
A soft credit pull is a credit inquiry that does not affect your credit score. This type of inquiry provides a snapshot of your creditworthiness without leaving a footprint that lenders or creditors can see. It’s commonly used for prequalification offers, background checks, and personal credit monitoring.
A hard credit pull, on the other hand, is a full credit inquiry that is recorded on your credit report and may temporarily lower your credit score. This type of pull is necessary when you formally apply for a loan or credit account, as lenders need to assess your full credit profile before making a lending decision.
How Fairway Uses Soft Credit Pulls for Preapprovals
Fairway’s approach to mortgage preapprovals starts with a soft credit pull. This allows us to evaluate your financial standing, including your credit score and debt-to-income ratio, without affecting your credit score. By doing this, we can provide an initial preapproval and help you understand your homebuying potential before committing to a full mortgage application.
Once you are ready to move forward with a specific property and submit a full mortgage application, a hard credit pull will be required. However, by that time, you’ll already have a clear understanding of your loan options and eligibility, minimizing unnecessary credit inquiries.
Protecting Your Information from Telemarketers
One of the biggest concerns with hard credit pulls is that credit bureaus can legally sell your information to third-party companies, leading to an influx of unwanted calls, emails, and texts from competing lenders. These companies purchase lead lists from credit bureaus, targeting borrowers who recently applied for a mortgage.
Fairway helps protect you from this hassle in two key ways:
- Using Soft Credit Pulls Initially – Since soft credit pulls are not visible to other lenders, they do not trigger telemarketing lists. This means you can explore your mortgage options without being bombarded with offers from other companies.
- Educating Our Clients – If a hard pull is necessary, we advise our clients on how to opt out of credit bureau marketing lists by visiting www.optoutprescreen.com. This federal opt-out service helps reduce unsolicited credit and insurance offers.
The Fairway Advantage: A Smarter, More Secure Preapproval Process
By utilizing soft credit pulls for preapprovals, Fairway ensures that:
- Your credit score remains unaffected during the early stages of the homebuying process.
- You avoid unnecessary hard inquiries that could lower your credit score.
- Your personal information is kept out of the hands of aggressive telemarketers.
This approach allows our clients to explore their mortgage options with confidence, knowing their credit is protected and their privacy is safeguarded. At Fairway, we’re committed to making the mortgage process as smooth, secure, and stress-free as possible.
If you’re thinking about buying a home and want to learn more about our preapproval process, contact us today. We’ll help you take the next step toward homeownership—without compromising your credit or your privacy.
