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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Rob Painter/Shutterstock May 04, 2021 Sarah Li Cain is an experienced content marketing writer specializing in FinTech, credit, loans, personal finance and banking. Her work has appeared in Fortune 500 companies, publications and startups such as Transferwise, Discover, Bankrate, Quicken Loans and KeyBank. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Comparing mortgage offers helps you find the lowest possible rate, which can ultimately save you thousands in interest. If you’re not careful about how you comparison-shop, though, you could unnecessarily hurt your credit score, which can make it harder to qualify for the best rate. With a bit of planning, this doesn’t have to be the case. Here’s how to without hurting your credit. 1 Shop around within a short timeframe
When you’re ready to get for a mortgage and want to from multiple lenders, aim to do it within a 45-day time frame. That’s because in this window, all of the credit inquiries different lenders make appear as one inquiry on your credit report. While your score might be affected by the single inquiry, it won’t be impacted as much as multiple inquiries on your report. That being said, it can be a good idea to get prequalified well before this time frame so that you have more time to compare rates and fees. 2 Get prequalified
Getting for a mortgage — some lenders call this a rate check — can be a smart strategy if you’re concerned about damaging your credit score as you comparison-shop. To prequalify you for a loan, lenders check your credit report, but conduct a “soft” inquiry, or soft pull, in which they prescreen your report without it affecting your score. A “hard” credit inquiry, in contrast — which happens when you get preapproved or formally apply for a loan — can adversely impact your score. Prequalification allows you to shop around and compare rates without this risk. Keep in mind: While getting prequalified can help minimize damage to your score, it is no substitute for getting preapproved when the time comes. In today’s seriously competitive seller’s market, a preapproval is necessary to prove to sellers you’ll be able to get financing if your offer is accepted. 3 Hold off on applying for new credit
If you’re also considering opening a new or taking out a while you shop for a mortgage, be aware: Multiple inquiries for different types of credit can negatively impact your credit score, hindering your efforts to obtain a competitive mortgage rate. If possible, wait until you officially close on your mortgage before applying for additional forms of credit. 4 Check your credit report
Whenever you apply for a loan, knowing where you stand credit-wise is important. If you check your credit report well in advance of comparison-shopping for a mortgage, you can take proactive steps to if needed — or fix any errors — putting you in the best position to get the lowest rate without accumulating unnecessary inquiries on your report. You can get a free copy of your credit report from each of the three major credit reporting agencies each year at . Don’t worry — checking your credit report won’t affect your score. 5 Pay down debt
If your credit score could use improvement, one of the best ways to raise it is to , like credit card balances. If doable, pay off a credit card balance in full — bonus points for keeping the balance as low as possible moving forward. Paying down your debt has a double benefit: Less debt lowers your , which can help you qualify for a bigger mortgage or one with better terms. Next steps
Protecting your credit score is important, even if you’re not shopping for a mortgage. Once you’re approved for a home loan and moving through the closing process, continue to maintain your score by refraining from applying for other types of credit, and continuing to pay down balances when possible. Learn more
SHARE: Sarah Li Cain is an experienced content marketing writer specializing in FinTech, credit, loans, personal finance and banking. Her work has appeared in Fortune 500 companies, publications and startups such as Transferwise, Discover, Bankrate, Quicken Loans and KeyBank. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Related Articles