Do I need my credit checked for a Mortgage Pre-approval?

hi I'm Stacy slam dung home loans and today I want to talk to you about an essential step in the home buying process checking your credit in order to get a free approval letter so let's dive in when you're ready to buy a home one of the first steps is obtaining a mortgage preapproval letter but do you need to check your credit to get this letter I can't tell you how many people ask me this question the answer is yes here here's why your credit is a crucial factor in determining your eligibility for a mortgage and if we don't check it and we don't pull it we have so much information that we just don't know about you and we can't give you a true true pre-approval so the answer is yes we have to pull your credit in order to give you a pre-approval and any reputable lender is not going to give you a pre-approval without pulling your credit if they do the pre-approval that you have really is not worth pay that it's written on checking your credit helps us do three really important things one it determines your credit worthiness in your credit score we need this information to help us decide which loan programs you qualify for different types of loans have different credit and credit score requirements like for example FHA loan requires a 580 credit score where a conventional loan requires a 620 credit score but if you want to do a HomeTown here alone that requires a 640 credit score once we have your credit score information we can place you in the correct Loan program we need to look at all of the rules on that program to see if you qualify so for example FHA has a maximum loan limit if your loan too high too low we need to find out and your debt to income rules are different on conventional loans than they are on FJ some loans have income restrictions or requirements that you must be a first-time home buyer all of these things have to be checked before we can issue you a pre approval next based on that program we put you in now we can determine your interest rate different loan programs have different interest rates so we also have to see if your loan or your specific situation has anything called Lan level pricing adjustments these are add-ons to the rate for your particular scenario they could be for your credit score it could be if you plan on um using the home as a rental or second home it could be your debt to income ratio all these things can affect your rate or your fees which will increase meaning it changes your approval the final part of this is on some loans your credit score directly affects your mortgage insurance rate so this can drastically affect your payment and how much you qualify for all of these things are necessary to issue a true pre-approval which is why yes we need to pull your credit to issue you a real ey pre-approval letter now the the last part of this is there's two kind of inquiries a hard inquiry and a soft inquiry a hard inquiry and how that affects your credit is it might hurt you a few points you know it might give you a little Ding and these are when somebody pulls you for a credit card a car loan and normally a mortgage loan and they can slightly lower your credit score by a few points now there's also a soft credit hit which has no impact on your credit at all and this is if you personally pull your own credit or a lot of lenders today can actually pull a soft credit bureau we actually pull a soft credit hit up front so it doesn't affect your credit score right away and it gives us a great overview of what's happening so now that you understand why pulling your credit is so crucial to the pre-approval process now you know don't just go get some Willy Dilly pre-approval off the internet where somebody didn't check all these things for you because it really matters it can cause you a lot of harm and frustration in the future if you get into contract with that one now if you need any more information or have any questions I want you to look down below and hit me up send me an email call me text me whatever you need we're slam D mortgage team we're here to help you we appreciate you being part of our family and we're looking forward to helping you happy house hunting bye-bye [Music]