Mortgage Pre-Approval Soft Inquiry: What You Need to Know
A mortgage pre-approval soft inquiry is a kind of inquiry that does not affect your credit score. It is a process that allows potential home buyers to have an idea of what kind of mortgage they can qualify for before they apply for one. A soft inquiry is more than just a tight review of your credit report.
What is a Mortgage Pre-Approval Soft Inquiry?
A mortgage pre-approval soft inquiry is a process that allows potential home buyers to get an idea of the kind of loan they can qualify for before they submit an application. It is a process that lenders use to review a person’s credit history, debt-to-income ratio, and other factors. The inquiry is not recorded on the person’s credit report.
What are the Benefits of a Mortgage Pre-Approval Soft Inquiry?
The primary benefit of a mortgage pre-approval soft inquiry is that it provides potential home buyers with an idea of the type of loan they can qualify for before they submit an application. This helps to ensure that the person is not wasting time or money on an application that will likely be denied. Additionally, the pre-approval soft inquiry helps to reduce the amount of paperwork needed for the loan application.
How Does a Mortgage Pre-Approval Soft Inquiry Work?
A mortgage pre-approval soft inquiry involves the lender reviewing a potential home buyer’s credit report and other factors to determine their eligibility for a loan. The lender looks at the potential borrower’s credit score, debt-to-income ratio, and other factors to determine whether they are likely to be approved for a loan. The lender then provides the potential borrower with an idea of what type of loan they could qualify for and the terms of the loan.
What Should You Do After a Mortgage Pre-Approval Soft Inquiry?
After a mortgage pre-approval soft inquiry, potential home buyers should consider submitting a formal loan application. The lender may require additional information and documents, such as bank statements and pay stubs, to complete the loan application process. Once the application is submitted, the lender will review the application and make a decision about whether to approve or deny the loan.
Mortgage pre-approval soft inquiries are an important part of the home buying process. They provide potential home buyers with an idea of the type of loan they can qualify for before they submit a formal loan application. It is important to remember that the inquiry does not affect a person’s credit score.