Mortgage Preapproval Soft Pull: What You Need to Know
Mortgage preapproval is a great way to get a better understanding of your homebuying budget and purchasing power. A preapproval is a preliminary review of your finances and credit that helps you determine how much house you can afford. But what many potential mortgage borrowers don’t realize is that there are two different types of preapprovals: a hard pull and a soft pull. This article will discuss the differences between the two and how a soft pull can help you get preapproved faster and more easily.
What Is a Mortgage Preapproval Soft Pull?
A soft pull is a type of mortgage preapproval that does not require a hard credit check. A hard pull is a full credit check that stays on your credit report for two years and can have an effect on your credit score. A soft pull, on the other hand, is a type of inquiry that does not affect your credit score, and it does not appear on your credit report.
What Is the Difference Between a Soft Pull and a Hard Pull?
The main difference between a soft pull and a hard pull is that a soft pull does not leave a mark on your credit report or affect your credit score. A hard pull, on the other hand, is a full credit check that can have a negative impact on your credit score. A hard pull can also stay on your credit report for two years and can be seen by potential lenders.
What Are the Benefits of a Soft Pull?
A soft pull is beneficial because it helps you get preapproved without negatively affecting your credit score. This is especially useful if you’re shopping around and comparing different lenders, as multiple hard pulls can have a significant impact on your credit score. Additionally, a soft pull is often a faster process than a hard pull, as it requires less paperwork and takes less time for the lender to review.
How Do I Get a Mortgage Preapproval Soft Pull?
Getting a mortgage preapproval soft pull is fairly simple. To start, you’ll need to provide the lender with certain documents, such as your Social Security Number and recent pay stubs. The lender will then review your documents and determine if you’re eligible for a soft pull preapproval. Once approved, you can start shopping for homes with confidence, knowing that you have been preapproved and that you won’t be negatively affected by the preapproval process.
Mortgage preapproval soft pulls can be a great way to get a better understanding of your homebuying budget and purchasing power without negatively impacting your credit score. With a soft pull, you can get preapproved with confidence, knowing that you won’t be affected by the preapproval process.