Most people who have a strong credit score and the credit history with various accounts with positive information do not need to worry much about the enquiries being made into the credit report and their subsequent effect on the credit score. Although a lot is said and discussed above the impact of enquiries on the credit score, this particular factor may fade into non-significance with the presence of other strong data in a credit report.
Too many applications made to lenders were credit is generally considered to be a deterrent factor in credit score calculation. However, in recent times lenders have begun to recognize the trend in a consumer to shop around for a good deal when he is looking for a loan or a credit card. The credit scoring models make the same exception. The credit score calculation has been defined by most of the companies to adjust to the fact that a consumer may apply for credit in various places and choose one only when he finds a good deal. The same was true when you are shopping for a mortgage loans.
A credit scoring model has special rules about enquiries that pertain to the same financial transaction. For example if multiple enquiries for a mortgage loans are made within 14 days they are treated as one enquiry as it is presumed that you are looking to procure credit for the same financial transaction that his purchase of a house.
Enquiries are recorded that someone is accessed your credit report. Because enquiries represent future potential debt which you have not yet undertaken they represent a certain amount of risk factor to future lenders, although they have no way of knowing the amount of debt that you have applied for. Applying for the credit means that there is a chance that you may get yourself under more debt and if you are already having problems with repaying your current debt than that will make you more of a risk to default on the new loans. As mentioned before if you credit history is strong with lots of positive data on it than you do not need to worry much about the enquiries on your credit report and their impact on your credit score. But if you’re already suffering from late payments and unpaid debt then the difference in the dropping of your credit score by a few points due to multiple enquiries might make it all the more difficult for you to approve for further loans and credit cards.
The bottom line is that multiple enquiries from mortgage will usually not affect your credit score much as both the lenders and the credit scoring models recognize it as the current trend with the consumer to shop around for the best deal provided that you have a strong credit history already. Most of the times only the people with strong credit scores of life or a mortgage loans as only they can hope to qualify for it.