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If I apply for a pre-qualify on a mortgage in order to shop the market and I am rejected, will that hurt my credit or my chances for a future mortgage? I’m a very responsible and financially independent college student, but I don’t have a very hefty income right now. Thoughts?

4 Thoughts on Will being rejected for a mortgage hurt my credit?
  1. Reply
    Dr. Deth
    January 24, 2013 at 7:16 am

    if you are rejected that early in the process, then you need to wait and clean up any credit problems and wait until you get out of school with a steady fulltime job for at least a year or two. don’t try buying a house while you’re going to school.

  2. Reply
    Steve M
    January 24, 2013 at 7:23 am

    Probably yes. The first question on any credit request is usually “Have you been refused credit before?”

  3. Reply
    John S
    January 24, 2013 at 7:48 am

    a decline will not appear on your credit but it will appear as an inquiry. you may be asked to write a letter of explanation regarding the inquiry to ensure you have not been approved and granted a mortgage especially when applying for a government loan (FHA of VA mortgage). actually, you will be asked for a letter of explanation on any credit inquiry that appears on your credit report for up to 60 days prior to your application for a mortgage through a government program to make sure you have not incurred new debt such as an auto loan, new credit card, etc.

  4. Reply
    January 24, 2013 at 8:41 am

    prequal’s dont pull credit. preapprovals do. Make sure you ask your loan officer which one he plans on doing.
    getting denied on credit doesnt hurt your score…..everytime they have to pull your score will hurt your score.

    you’re allowed to have unlimited mortgage credit pulls within 14days…and only penalize as 1 credit pull. EVEN IF YOU DO GET ACCEPTED….it’s still a credit pull and your score will probably go down by 4-7points. generally, 4-7 points doesnt make or break a deal.

    you can probably buy a home AFTER you graduate from college, AND work in the same line as your degree. For example, if you graduate with a microbio degree…and you do TV SALES…then that will hurt your chances.

    If you receive a ‘salary’ after college…then you have a good chance of getting a mortgage. with commissions, bonuses, overtime, and part-time…you will need minimum of 2yrs employment.

    good luck

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