Prepay and CR pull questions

I just had a mortgage lender tell me that my score is not affected when mortgage lenders pull my CR. It is only when brokers or other loan companies pull your report that it is affected.

Can anyone confirm this.


Has anyone ever heard of a prepayment penalty applying only if you refinance, but not if you sell?



The only way that your score is not affected, is when you pull your own credit reports.
Also, a prepayment penalty would apply wheather you refi. or sell, i think this guy is really jerking your chain…

The pre-pay you are referring to is called a “soft” pre-pay. It allows you to sell your property without activating the pre-pay clause. The “hard” pre-pay is activated by either selling OR refinancing within the pre-pay period.

As for the credit report what I was told from my credit reporting agency is that all mortgage pulls within 30 days only count as one pull.

The only way that your score is not affected, is when you pull your own credit reports.

Please note that in most cases the credit score that you pull as a consumer is NOT the same as the one a mortgage company pulls. The score that lenders receive are generally lower.

All credit reports pulls in a 14 day window count as one. Check out for more information.

Whenever anyone pulls your report, it may lower your score by 3-5 points, however you score being lowered doesn’t kick in for 30 days.

You can also get mortgages where there are no prepayment penalties, but you normally pay a slightly higher rate. May be worth it if you’re thinking of selling or doing a refi in a short period. Certain states also don’t allow a prepayment penalty.

I would ONLY deal directly with Transunion, Experian, Equifax period…
A mortgage broker (that i had applied for a loan thru) pulled my credit reports through Myfico(Suzie Orman) and the scores were over 35 points lower than the scores that i had pulled the same day directly thru experian.
My score is really 685, Myfico said my score was 647
The difference could decide wheather you get a mortgage at a decent rate or not, in some cases, decide if you can even get a mortgage or not.
I called the Federal Trade Commission, they are now investigating, they also said they have other complaints about Myfico under investigation.

Thanks for all your input.

It is interesting to see how each lender uses different scores. Or use the same scores but differently. Some use FICO others don’t. Some use the FICO mid score, some use the average. It really depends on the lender, from what I am discovering.

There seems to be differing opinion on how pulls can affect your score. I will probably go with what FICO says in this brochure

As for the prepay penalty, again each lender seems to have their own guidelines. Some apply the “soft” prepay method, others don’t.

At the end of the day shopping for a mortgage is like shopping for anything. The more research you put into it, the more you will get out.

What would we do without the internet!

Thanks again.

LOL…Your lender is telling you this for reasons less obvious to most; he is less concerned with your best interest (your scores going down) and more concerned with you shopping his offer.

Scare tactic 101…this is how chumps and con artists pitch their game…

Credit bureaus have smartened up and realize that consumers are going to shop for a mortgage and allow for multiple pulls for a fixed period of time.

You other question has been answered satisfactorily.


Scott Miller

What brings down a credit score is base on certain variables. The most is credit usage. High balances.
Most brokers will use 90 days old credit report. When a deal is possible, they will run it for any current liens or encumbrances. If you run your credit with so many lenders all year… yes your score do drop.

Hard prepay-Whether you sell or refinance. Yes, there are a pre-pay.
Soft pre-pay - when you refinance. Yes, pre-pay. When you sell. No pre-pay