Hard vs. Soft Credit Pull in Idaho: What Borrowers and Realtors Should Know

✍️ Hard vs. Soft Credit Pulls in Idaho: What Homebuyers & Realtors Need to Know

If you’re getting ready to buy a home or help a client in Idaho, you've probably heard the terms hard pull and soft pull tossed around. But what do they really mean - and how does it affect a borrower's credit score? In this guide, we break down the difference between a hard vs. soft credit pull in Idaho, how it impacts mortgage approvals, and what both realtors and homebuyers need to know.

What Is a Soft Credit Pull?

A soft credit pull (or inquiry) is like a casual glance at your credit report. It doesn’t affect your score and is often used for:

• Pre-qualification for a mortgage

• Credit monitoring services

• Background checks

• Promotional credit offers (you know, the ones promising a Hawaiian vacation for signing up)

💡 Idaho Pro Tip: Many local lenders - like ahem, 1st Choice Mortgage - use soft pulls during pre-qualification to give buyers a no-risk preview of where they stand.

What Is a Hard Credit Pull?

A hard credit pull (or inquiry) is the real deal. It happens when you officially apply for a loan or credit and give a lender permission to check your full credit report.

Hard pulls occur when:

• You apply for a mortgage

• You apply for a car loan or credit card

• You refinance your home

And yes, this does temporarily affect your score.

How Many Points Does a Hard Credit Pull Cost?

According to FICO:

• A hard pull usually drops your score by 3-5 points or less.

• The impact is temporary and minimal - unless you're applying for multiple loans you don't need (don't do that).

🏡 Mortgage Shopping Exception:
FICO and VantageScore allow multiple mortgage-related hard pulls within a 45-day window to count as one inquiry. So, shop smart and compare Idaho lenders without fear!

When Do You Get Those Points Back?

Here's the good news:

• Most of the credit score drop recovers in 90 days if no other new credit activity occurs.

• The hard inquiry drops off entirely after 2 years.

• Responsible borrowing during and after your application will actually improve your score over time.

Advice for Idaho Borrowers

• Don't panic over a hard pull - it's part of the process.

• Don't delay your pre-approval just to protect a few points.

• Work with a local lender who explains how your credit is used - like us at 1st Choice Mortgage! 😉

Advice for Realtors

Educate your clients:

• Pre-qualifications often involve soft pulls.

  • But it is better to get Pre-Approved, here is why:  Pre-Approvals are Better

• Pre-approvals require a hard pull but are necessary for strong offers.

• Encourage clients to work with Idaho lenders (Hint, Hint, like us!) who protect their credit and explain the process thoroughly.

🎯 Call to Action:

Want a soft pull mortgage pre-qual without hurting your score? Or ready for a full pre-approval with Idaho's top-rated local loan officer? Contact 1st Choice Mortgage today and let's get you home!