It is becoming increasingly customary. The cost of credit reports doubled in 2025 and became a significant expense. It is no longer feasible to simply absorb these upfront expenses while offering the most competitive terms available. Lenders would have to charge you higher rates to offset the credit reports costs of borrowers who request a credit pull but do not move forward. This would not be fair or transparent to you.
We do not take credit pulls lightly. Prior to obtaining the credit report, we will review the application and any documents you share. If we see issues, we will let you know. Also, we can provide very accurate rate and cost details based on the known information and an assumed credit score.
Hard pulls are required for actual purchase and refinance applications. Hard pulls can be re-issued into underwriting systems and used for underwriting purposes. If the loan does not close within 120 days from the hard pull credit report date, the credit report will expire. Hard pulls are reflected on your credit report and are visible to others.
Soft pulls can be done for pre-approvals. Soft pulls cannot be re-issued into underwriting systems and are not usable for actual loan applications. If you need a pre-approval only, a soft pull may make sense initially. Hard pull will be required when and if you apply for the actual loan. Unlike hard pulls, soft pulls are invisible. They are not reflected on the credit report and cannot be seen by others.
There are two ways to pay for the credit report. We can take your credit card information and place the credit report request with our credit report provider. Or you can place the credit report request and make the payment directly to the provider on the designated borrower portal (preferred method). Please check with your loan officer for further instructions.