New credit inquiry


LoanSafe Member
Feb 11, 2019
I opened two new accounts in November and now am applying for a mortgage. How much will this hurt me and how should I “explain” on the letter of explanation for the underwriter?

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
San Diego, California
Hi there,
You can't really pinpoint how much a credit inquiry will affect your score but it is typically 2-4 points. Usually it's not something noticeable but if you've pulled it 30 times over the course of a year instead of 3-4, the impact may be more noticeable.

When explaining credit inquiries you want to explain whether or not they resulted in new debt. The reason for this is, if you obtained a new credit card, car...etc it could affect your debt to income ratio which would in turn affect how much you qualify for.

There are also ways to improve your credit before purchasing a home that a lender can help you with called a "Credit Simulator". Once you take the actions that the simulator tells you to do, we can immediately improve your score with our Rapid Rescore option.

If you have any questions about this or would like me to run one for you, please feel free to reach out. I am licensed in almost every state in the country. [email protected] or 619-379-8999.