It's a good idea to shop around for the best rates and lowest fees when you are looking to get a mortgage. Unfortunately, many buyers worry that multiple lenders will be checking your credit score. This can make it difficult to shop around for a mortgage. The good news is that you can still shop for mortgages if you adhere to a few guidelines.

Soft Pulls

First, let's clarify that there are two types of credit pulls: a "soft pull" or a "hard draw." There is a huge difference between them.

Soft pulls are often done without your knowledge and don't impact your credit score. These types of inquiries can be done without your consent, for example, when you get an unsolicited credit card offer by mail or when a potential employer pulls your credit history as part of a background investigation. Sometimes, a soft pull occurs when you check your credit score. These two events are considered soft pulls and won't affect your credit score.

Hard Pulls

A "hard pull" can impact your score. It's common to speak with multiple lenders when you are shopping for a mortgage. Multiple requests for credit reports can be a problem. This can cause your score to be affected by every "hard pull" unless the pulls are made within a certain window. Credit bureaus know potential borrowers "rate shop," so there is usually a 14-to 45-day window depending on which credit bureau where all pulls are consolidated.

You can almost guarantee that the lender will pull your credit report in order to approve you for a mortgage. The inquiry will remain on your credit report for two years, but it will not affect your score. However, this inquiry can reduce your score by a few points per inquiry. It's best to shop around within a time frame to avoid being penalized each time you make an inquiry.

This hard credit will remain on your credit report for two years. After that, however, lenders will be aware of your mortgage shopping history and may consider rate shopping if you have a lower score than you would like.

Take A Look Around

You have a grace period for comparing rates so take advantage of it. You can save thousands of dollars by comparing rates from different lenders. Saving money is a good idea since buying a house is one of your most expensive ventures.

Comparing rates and shopping around will help you find the best deal. Reading reviews of lenders and understanding the details of the quotes can also help you avoid extra fees. Talk to a lender about your options and compare rates with other lenders.

You should also check your credit score before you ask for these hard pulls. Then, you'll be able to rectify any credit issues before the lender pulls it for you to assess. You can also check your score without worrying, as soft pulls will not negatively impact your score.