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notsureofthis

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Does backing out of a mortgage that has already been approved affect my credit score.
I've been approved for a mortgage but changed my mind, does this affect my score

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Limited impact...

Helpful to 2 out of 2 people

If you applied for and were approved for a loan, the only impact should be a hard credit inquiry on your report (possibly a few if your loan was shopped around).  This should impact your score by only a few points and unless you were very close the minimum score to qualify (generallly 620 FICO), you should be just fine.  If you were just pre-approved or pre-qualified, there shouldn't be any inquiries on your credit and there should be no impact at all.

Out of curiosity, why are you backing out of a loan that you were approved for?  Sometimes you can negotiate things like closing fees and even the rate if you show that you are willing to take your business elsewhere.  I always suggest being polite, but be firm that if you can't get the terms you want, you are willing to walk away.  Mortgage companies, banks, and brokers all make money only when you close on a loan.  You are, after all, the customer. 

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Have you been approved  or pre-qualified for a loan?

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