Look, I've been doing this since I was 18. Someone recruited me to the mortgage industry while I was serving wings at Bucker's. Anyway. The question I hear most from first-time home buyers is: "Will getting preapproved hurt my credit?"
The short answer? Yes, but not really. You should worry way more about missing a credit card payment than getting preapproved for a mortgage.
Let me paint you a picture of what actually happens to your credit when you get preapproved, why it matters less than you think, and how to shop for a mortgage without tanking your score. Understanding this stuff separates buyers who stress over every little thing from buyers who confidently make moves in competitive markets.
When you apply for mortgage preapproval, your lender performs what's called a "hard inquiry" or "hard pull" on your credit report. According to FICO, the company that invented credit scores, this typically drops your score by less than 5 points for most people.
Let me show you what that actually looks like with real numbers:
Credit Score Impact:
Starting Score
Hard Inquiry Impact
New Score Range
Recovery Time
740
-3 to -5 points
735-737
3-6 months
680
-4 to -5 points
675-676
3-6 months
620
-5 points
615
3-6 months
For perspective, a single late payment can drop your score by 50-100 points depending on your credit history. One maxed-out credit card? That could cost you 30-50 points. The preapproval inquiry? It's like getting a paper cut compared to those wounds.
And here's where it gets interesting. The impact fades fast. According to data from Experian, most borrowers see their scores bounce back to pre-inquiry levels within 3-6 months, assuming everything else stays positive.
Why So Small?
Credit inquiries account for less than 10% of your FICO score calculation. Payment history makes up 35%, and your credit utilization ratio represents another 30%. The inquiry from your preapproval is literally the smallest slice of the credit score pie.
People with six or more inquiries on their reports can be up to eight times more likely to declare bankruptcy than those with none, according to myFICO data. But that's not because inquiries cause financial problems. It's because people desperately seeking credit everywhere often have underlying financial issues.
Here's something that confuses a lot of borrowers. Hard inquiries stay on your credit report for 2 years, but they only affect your FICO score for 12 months.
Not gonna lie, this timeline thing trips up even experienced buyers sometimes. I've had clients panic when they see an old inquiry still listed on their report, thinking it's actively hurting them. It's not. It's just sitting there like an old receipt in your wallet.
This is the part nobody talks about enough, and it's honestly one of the smartest things the credit scoring models do.
When you're shopping for a mortgage, auto loan, or student loan, credit bureaus understand you're comparing rates, not suddenly taking on five different mortgages. So they've built in protection.
For mortgage inquiries made within a 45-day period (14 days for older FICO models), all inquiries count as just ONE inquiry on your credit score. According to FICO's official guidelines updated in 2021, newer scoring models even ignore ALL mortgage inquiries made in the 30 days prior to scoring.
Let me break down a real scenario I worked with last month:
Result: All four inquiries equal ONE hit to the credit score, saving approximately 12-15 points.
That 45-day window is for mortgages specifically. If you applied for a mortgage AND a car loan during the same period, those would count separately. The credit bureaus know those are two different types of credit searches.
Pro Strategy from the Field:
Do your homework first. Research lenders, read reviews, check rates online (most are soft inquiries that don't affect your score). Then, in one focused 2-3 week period, submit formal applications to your top 3-4 choices. You'll get your preapproval letters, compare real offers, and only take one credit score hit.
Okay, real talk for a second. The mortgage industry loves using these terms interchangeably, which drives me absolutely crazy because they're completely different things.
Prequalification:
Preapproval:
I can't count how many times I've seen buyers lose out on homes because they showed up with a prequalification letter instead of a preapproval. In competitive markets where inventory is tight and buyers are competing, that preapproval letter is basically your ticket to be taken seriously.
When you work with AmeriSave, we verify everything upfront: your income, assets, employment, credit history. That's why our preapprovals carry weight. We've already done the heavy lifting that other lenders might save for later.
Let me walk you through the exact process, because knowing what to expect makes this way less stressful.
You'll need:
So I was working with a borrower last week who'd organized everything into a single digital folder ahead of time. Her preapproval? Done in 36 hours. Compare that to someone who needs to track down documents, contact their HR department, dig through old emails. That process might take a week or more.
Your loan officer reviews everything and runs your credit. According to industry data from the Mortgage Bankers Association, the average preapproval with complete documentation takes 3 business days. With online lenders using automated systems, some AmeriSave preapprovals can be completed even faster.
Debt-to-Income Ratio Calculation:
Loan-to-Value Ratio:
This letter is gold. Bottom line? This letter tells sellers you're not just a browser, you're a buyer who can close.
Most preapproval letters are valid for 60-90 days, though some lenders offer 30-60 day windows. Why the expiration date? Your financial situation and market conditions can change.
What Happens If It Expires:
Don't panic. Renewal typically requires:
According to Navy Federal Credit Union data (March 2025), preapproval letters typically last 60-90 days. That's actually plenty of time if you're actively house hunting.
Here's my challenge to you: Don't get preapproved six months before you're ready to buy. Get preapproved when you're genuinely ready to start touring homes and making offers within the next 30-60 days.
If you're worried about your credit score during the home buying process, focus on the factors that make up the other 90% of your score:
Payment History (35% of score):
Credit Utilization (30% of score):
Credit Mix (10% of score):
New Credit/Inquiries (10% or less of score):
Between you and me, I see more buyers hurt their scores by opening a furniture store credit card right before closing than I ever see damaged by the preapproval process.
Look, I get it. This stuff is hard. After years of doing this, being licensed in 37 states, working with borrowers from every background imaginable, I still see smart, capable people get anxious about credit inquiries.
But the 2-5 point temporary dip from preapproval is nothing compared to the benefits you gain. You know your actual budget based on real underwriting, sellers take you seriously, you move faster when you find the right home, and you catch problems early.
According to Consumer Financial Protection Bureau guidance, buyers should contact at least three lenders when shopping for a mortgage. That's exactly the kind of comparison shopping the 45-day window protects.
If you're ready to take the next step, consider getting preapproved with AmeriSave. We make the process straightforward, keep you informed every step, and help you understand exactly what you can afford without any surprises.
And if you have questions about your specific situation, whether you're worried about your credit, dealing with complicated income documentation, or navigating a tight market, talk to a loan officer who can give you personalized guidance. That's what we're here for.
According to FICO, mortgage preapproval typically reduces your credit score by less than 5 points, with many borrowers seeing drops of only 2-3 points. The exact impact depends on your overall credit profile. If you have a thin credit file with few accounts, you might see a slightly larger drop. If you have an established credit history with multiple accounts and strong payment history, the impact will be minimal. Most borrowers see their scores return to pre-inquiry levels within three to six months with continued on-time payments. For perspective, missing a single credit card payment causes far more damage, typically 50-100 points depending on your credit history, than getting preapproved ever will.
Absolutely, and you should. Credit scoring models specifically account for mortgage rate shopping. When you apply to multiple lenders within a 45-day window, all those inquiries count as just one single inquiry on your credit score. Newer FICO scoring models completely ignore all mortgage inquiries made in the 30 days prior to when your score is calculated. I always recommend my clients compare at least three lenders to ensure they're getting competitive terms. Just do all your shopping within that focused period rather than spreading it out over several months. Research lenders first, then submit formal applications to your top three or four choices all at once.
Not at all. When you check your own credit report or score, that's called a "soft inquiry" and it has absolutely zero impact on your credit score. You can check your credit as many times as you want through services like Credit Karma, myFICO, or AnnualCreditReport.com without any negative consequences. I strongly encourage you to check your credit before starting the preapproval process. You want to know what's on there, catch any errors, and understand where you stand before a lender pulls your report. I've seen situations where clients were surprised by incorrect information, old accounts that should have been closed, or debts they'd already paid off showing as open. It's much better to discover and dispute these issues before you're in the middle of the preapproval process.
This depends on when your preapproval letter expires, typically 60-90 days, and whether you're still within the 45-day rate shopping window. If your preapproval expires, you'll need to update it with new documentation regardless. If you're applying with the same lender or applying to new lenders within 45 days of your original inquiry, those additional inquiries will still be counted as one for credit scoring purposes. Once you're outside that 45-day window, a new application will count as a separate hard inquiry. That said, one additional inquiry still only costs you about 2-5 points, which is minimal. Many buyers go through this process. They get preapproved, search for three months, don't find the right home, then need to renew their preapproval with updated documentation.
No, the credit inquiry impact is the same regardless of the loan amount you're seeking. Whether you're getting preapproved for a $200,000 loan or a $600,000 loan, you're still just getting one hard inquiry that drops your score by less than 5 points. That said, you should still be strategic about the amount you request. Don't ask for preapproval for more than you actually need or can comfortably afford, because that preapproval amount will shape your home search. Many buyers make the mistake of getting preapproved for their absolute maximum, the highest amount a lender will give them, and then they feel pressured to spend up to that limit. I always tell my clients to think about what monthly payment you're comfortable with, not just what you qualify for.
This is actually a common misconception. Getting preapproved when you have challenged credit can actually help you understand exactly what you need to improve and how long it will take. When you apply for preapproval, you'll get specific feedback about what's holding you back, whether it's your credit score, your debt-to-income ratio, lack of credit history, or specific negative items on your report. This information is incredibly valuable for creating a concrete plan to become mortgage-ready. Yes, the hard inquiry will temporarily lower your score by a few points, but if you're not in a position to buy right now anyway, that small temporary dip doesn't matter. What matters is getting a roadmap from a real loan officer. Some programs, like FHA loans, accept credit scores as low as 580, and even some conventional programs work with scores in the 620s.
No, and this is an important distinction. Preapproval is a conditional commitment based on the financial information you've provided and verified at that point in time. It tells you the maximum amount you can likely borrow, but final loan approval depends on several additional factors that happen after you find a home and make an offer. The property itself needs to appraise for the purchase price, the title needs to be clear of liens, and you need to maintain your financial status through closing. Common things that can derail a preapproved loan include changing jobs before closing, taking on new debt like a car loan or furniture financing, making large unexplained deposits into your bank account, or having your credit score drop due to missed payments. That's why I always tell buyers to treat preapproval as the starting line, not the finish line.
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