Multiple mortgage credit inquiries within a short window are treated as a single inquiry for scoring purposes. This rate shopping buffer allows borrowers to compare lenders without suffering multiple credit score hits. Understanding the exact rules matters when advising borrowers on timing.
The FICO Rate Shopping Window
FICO 8 and higher scoring models treat all mortgage inquiries within a 45-day window as a single inquiry. However, older FICO models (versions 2, 4, and 5) are still used by the credit bureaus for mortgage tri-merge reports, and these models use a 14-day window. This is the model most mortgage lenders still pull. The practical implication: borrowers should complete all mortgage shopping within a 14-day period to ensure rate shopping protection.
When the Window Starts
- ✦The window starts with the first mortgage inquiry.
- ✦Any subsequent mortgage-related inquiry within 14 days of the first is automatically grouped and treated as a single hit.
- ✦If a borrower has an inquiry on June 8 and another on June 25, the second inquiry is not grouped and counts as a separate hit.
Other Credit Pulls to Avoid
- ✦Auto loan and credit card inquiries are not grouped with mortgage inquiries even within the same window.
- ✦A borrower who opens a new credit card or takes out an auto loan during the rate shopping period creates a separate inquiry and potentially changes credit utilization.
- ✦MLOs should advise borrowers not to apply for any other credit during the mortgage process, including retail store financing offers.
Aria can explain credit inquiry rules, walk through how multiple pulls affect scoring, and help MLOs advise borrowers on protecting their credit during the rate shopping process. Ask at vicariointel.com.
7-day free trial. No credit card required.
Ask Aria About Credit Inquiry and Rate Shopping Rules →