Soft Credit Check

A soft credit check (or "soft pull") occurs when your credit report is reviewed for pre-approval offers, background checks, or personal monitoring. Unlike hard pulls, the soft credit pull does not impact your credit score negatively. While visible on your personal credit report for 12-24 months, they are not seen by lenders.

Under federal rules, a mortgage lender must provide a standardized Loan Estimate form within three business days of receiving just six specific pieces of information from you: your name, income, Social Security number, property address, estimated property value, and desired loan amount.

Required Information for a Loan Estimate to be issued

  • Your name to identify the applicant.

  • Your income to evaluate initial financial capacity.

  • Your Social Security number to pull your credit report.

  • The property address of the home you want to buy or refinance.

  • An estimate of the property's value to gauge the baseline worth.

  • The desired loan amount you want to borrow.

Rules and Guidelines

As noted, lenders are legally obligated to issue this form once these six items are provided. According to guidelines from the Consumer Financial Protection Bureau, lenders cannot demand supporting documents—like W-2s or pay stubs—just to issue a Loan Estimate. They also cannot charge any fees aside from a basic credit report fee until you receive the form and state that you intend to move forward.

A FICO score is a three-digit number from 300 to 850 created by the Fair Isaac Corporation. Banks and lenders use this number to see how safe it is to lend you money. A higher score shows you pay your debts on time.

Score Ranges

  • 800–850: Exceptional

  • 740–799: Very good

  • 670–739: Good

  • 580–669: Fair

  • 300–579: Poor

How It Is Calculated

  • Payment history (35%): Do you pay your bills on time?

  • Amounts owed (30%): How much debt do you have compared to your limit?

  • Length of credit history (15%): How long have your accounts been open?

  • New credit (10%): How often do you apply for new accounts?

  • Credit mix (10%): Do you have different types of loans, like cards or car payments?