🚀 go-pugleaf

>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.

Stanley Cline  <sc1-news@roamer1.org> wrote:
>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.

If a dealer pulls a "hard" inquiry on you without your signature on a
form permitting him to do that, he's violated the FCRA, and you can
sue him for damages.  But it would probably be simpler to just send
the sales manager a copy of your credit report (showing the hard
inquiry from his dealership) and a letter suggesting you'll forget the
whole thing if they send you a check for $500 within 15 days.

Now a "soft" inquiry, that's OK, but it doesn't get much info, just
your name, address, and phone number.  And of course your SSN, but
they probably already had that if they pulled the inquiry.

>- 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!
    [snip]

Those are probably legit.  You signed papers allowing it when you
applied for the loan.  But as grabiner pointed out, those inquiries
within a short time won't affect your credit score.

I'm not sure why there should be an inquiry from Fanny or Freddie,
though.  I think the lenders will just re-sell the mortgage and
submit a "certified" copy of the final report they pulled at
closing.
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