Commandment #7: Thou shall not originate any inquiries into your credit.
What does that mean? Well, that basically means after you’ve got your mortgage approval and you’re all ready to go and everything’s set to close.
The last thing you want to do is have a whole bunch of credit inquiries into your credit bureau. The reason that, is because lenders tend to get nervous when they see that.
If they see all these credit inquiries on your credit bureau, they’re going think that you’re actually out seeking credit somewhere else.
So it’s going to cause them to question their entire approval process.
So you don’t want to raise any red flags. Not that it would be a major problem because you’d have to prove that you didn’t have any credit, but don’t raise the flags. Plus if you keep getting credit inquiries that could be bringing down your credit score, not buy a lot, but a little bit at a time.
If your credit score is pretty close, then the last thing you want to do is knock it below the threshold that you need in order to qualify for your financing. So once you got your mortgage preapproval done, and you’re all set to go, you’re good to go to closing, stop with the credit inquiries until after you close.