The hazards of applying to multiple lenders
It’s natural that when you are researching something as important as a home loan, you should do as much research and comparison shopping as possible. However, if you apply for a mortgage through several lenders at once, your vigilance could backfire.
How multiple applications impact your credit score
Multiple applications increases the risk of being declined, and every time your credit application is declined, your credit score is impacted. The credit score is the rating of your creditworthiness, and is calculated based on the information in your credit file, which is your history of dealings with credit providers over the past five years. So having numerous loan applications within a short timeframe can have a domino effect, increasing the likelihood of the next lender declining your loan based on a quick review of your credit score.
This rejection is not...
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