With the new CFPB rule effective 8/1/2015, how will a consumer's credit score be impacted if they are encouraged to "Shop Around for a Lender?" If a CO consumer shops around will it lower their score?

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Patricia Feager, MBA, CRS, GRI,MRP, Selling Homes Changing Lives (DFW FINE PROPERTIES)

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Rainmaker
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John McCormack, CRS

Albuquerque Homes Realty - Albuquerque, NM

Honesty, Integrity, Results, Experienced. HIRE Me!

I suppose it would depend on the time laps in between their shopping. Joe Petrowsky can you help us out on understanding more on this one?

May 17, 2015 12:15 AM

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John McCormack, CRS

Albuquerque, NM

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Tammy Lankford,

Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA

Broker GA Lake Sinclair/Eatonton/Milledgeville

If your credit is pulled by several car dealers or several lenders for mortgage in a short period of time it doesn't lower your score. That change was made a few years ago to encourage "shopping around"

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May 16, 2015 01:31 PM

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Inna Ivchenko

Encino, CA

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Joe Petrowsky

Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT

Your Mortgage Consultant for Life

I wouldn't worry too much about that issue, fold will do very little shopping around, but expect a few will find out the hard way the affect on scores.

May 16, 2015 07:06 AM

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Inna Ivchenko

Encino, CA

Rainmaker
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Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

I don't think it affects the score.

Dec 13, 2018 06:09 AM

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Rainmaker
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Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Haven Express @ Keller Williams Arizona Realty

parked and reading....

Dec 09, 2017 04:57 AM

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Rainmaker
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John Novak

Keller Williams Realty The Marketplace - Las Vegas, NV

Henderson, Las Vegas and Summerlin Real Estate

Excellent question, and one that I want to be sure my lenders answer clearly before August 1. I envision one or two more disclosures being part of our buyer paperwork to address CFPB.

May 17, 2015 01:38 AM

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Rainmaker
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Gita Bantwal

RE/MAX Centre Realtors - Warwick, PA

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

When buyers shop around for a lender I advice them to tell the lender their credit score and say they do not want it to be pulled each time until they are ready to buy.

May 16, 2015 11:15 PM

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Rainmaker
2,759,812

TeamCHI - Complete Home Inspections, Inc.

Complete Home Inspections, Inc. - Brentwood, TN

Home Inspectons - Nashville, TN area - 615.661.029

I do not have a dog in this hunt Patricia.

May 16, 2015 07:11 PM

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Rainmaker
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Troy Erickson AZ Realtor (602) 295-6807

HomeSmart - Chandler, AZ

Your Chandler, Ahwatukee, and East Valley Realtor

Patricia - I have heard that if someone shops for a mortgage, but their credit was pulled multiple times within a short time period, it will be treated as one credit score/search pulled, and should not affect the overall score.

I, however, do not know if this is entirely true or not. A lending expert should have the answer.

May 16, 2015 05:47 PM

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Rainmaker
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Inna Ivchenko

Barcode Properties - Encino, CA

Realtor® • GRI • HAFA • PSC Calabasas CA

I would not worry about this new form/rule. I do think they should interview few lenders( without running a report every time), and find out who they can trust and want to work with. I did have buyers who were working with my preferred lender, but kept on ''shopping'', they did damage their scores.

I'd say: choose one and be loyal.

May 16, 2015 04:32 PM

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Rainmaker
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Evelyn Johnston

Friends & Neighbors Real Estate - Elkhart, IN

The People You Know, Like and Trust!

Yes, I believe it will impact their scores.

May 16, 2015 02:41 PM

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Rainmaker
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Debbie Reynolds, C21 Platinum Properties

Platinum Properties- (931)771-9070 - Clarksville, TN

The Dedicated Clarksville TN Realtor-(931)320-6730

I have always heard if they shop within a two week period it would be treated as one. I would like someone in the industry to say if that is true

May 16, 2015 12:32 PM

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I suppose it would depend on the time laps in between their shopping. Joe Petrowsky can you help us out on understanding more on this one?
If your credit is pulled by several car dealers or several lenders for mortgage in a short period of time it doesn't lower your score. That change was made a few years ago to encourage "shopping around"

FAQ
I wouldn't worry too much about that issue, fold will do very little shopping around, but expect a few will find out the hard way the affect on scores.
Excellent question, and one that I want to be sure my lenders answer clearly before August 1. I envision one or two more disclosures being part of our buyer paperwork to address CFPB.
When buyers shop around for a lender I advice them to tell the lender their credit score and say they do not want it to be pulled each time until they are ready to buy.
Patricia - I have heard that if someone shops for a mortgage, but their credit was pulled multiple times within a short time period, it will be treated as one credit score/search pulled, and should not affect the overall score.

I, however, do not know if this is entirely true or not. A lending expert should have the answer.
I would not worry about this new form/rule. I do think they should interview few lenders( without running a report every time), and find out who they can trust and want to work with. I did have buyers who were working with my preferred lender, but kept on ''shopping'', they did damage their scores.

I'd say: choose one and be loyal.
I have always heard if they shop within a two week period it would be treated as one. I would like someone in the industry to say if that is true