Understanding their policy and how to take advantage of it can mean the difference between a great mortgage and a mortgage you are just stuck with. When you are ready to mortgage shop, give yourself two weeks to apply with as many lenders as you would like to. The reason is the bureaus will reduce your score by five points for the first inquiry; however any additional inquiries for mortgage applications will not affect your score for a period of 14 days. Regardless of whether you apply with five lenders or fifty, as long as you are within that window you will only be hit for those first five points. A mortgage lender that requests your credit report will drop your credit score by five points. One mortgage application and the five point drop is not likely to have any negative effect on your chances of approval and level of interest rate. So if you are responsible and visit with say 20 different lenders who all pull your report, simply looking for the best mortgage will drop your score by 100 points. That is a big deal. It's an understandable concern and in years past it was also valid, but not so today. Most people, including the credit bureaus, encourage borrowers to diligently shop for their mortgage with a number of lenders to obtain the best rates and terms for their unique situation. The bottom line is when done properly, mortgage shopping will absolutely not drop your credit score. A person requesting multiple credit cards for example, has a greater opportunity to use them and increase their level of debt.Whenever a potential creditor requests your credit report, it is called a credit inquiry. When you are seeking to obtain new lines of credit, it makes sense that The mortgage bureaus have wisely created policies that allow mortgage shoppers to look at all their options without causing undue damage to their credit rating.