🚀 go-pugleaf

On 02 May 2004 10:45:02 -0400, grabiner@alumni.princeton.edu (David J.
Grabiner) wrote:

>mortgage inquiries in a short time as just one inquiry.  The logic is
>that if you apply for six mortgages or six auto loans, you are not going
>to buy any more houses or cars than if you applied only once.

Beside the tendency of people to rate shop for car and home loans,
buying a car or a home tends to result in multiple inquiries no matter
what.  For car loans, dealers often run credit reports while a
potential buyer is out on a test drive, resulting in an inquiry even
if the buyer walks away from a deal and doesn't actually apply for a
loan or has pre-approval from a non-dealer lender, and for mortgages,
lots of reports always get pulled (always at application time, often
again during underwriting, and almost always again just before and/or
just after closing.)

Two personal examples of lots of reports getting pulled when shopping
for/buying a car or home:

- When I bought a new car four years ago, I had four inquiries by the
  time I had a new car, three from three different dealerships and one
  from the bank where I got the final loan.

- I'm in the process of buying a house (with a "piggyback" arrangement
  to avoid PMI -- one first mortgage for 80% LTV and a HELOC for 15%,
  with 5% down) and got a FICO from Equifax last week for the heck of
  it;  there have been four inquiries related to the mortgage:  two
  related to the mortgage broker (one from the broker itself and an
  "ID verification" inquiry from the broker via Factual Data), one
  from the 80% lender, and one from the 15% lender (yes, the 80%
  lender and 15% lender are two different banks.)  And I haven't
  closed yet (I close on the 13th), so I expect to see one from Fannie
  or Freddie and perhaps one each from the two lenders at closing
  time!  There was one "unrelated" inquiry from a home security firm,
  and will probably be one or two more from utilities by the time I
  move.  My score actually went *up* a bit since the last time I got a
  score *even despite the inquiries*, probably because I have lower
  balances on credit cards right now in light of getting the mortgage.

-SC
-- 
Stanley Cline -- sc1 at roamer1 dot org -- http://www.roamer1.org/
...
"Never put off until tomorrow what you can do today.  There might
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