Credit Pull: Hard Credit Pull

In order to determine a borrower’s ability to repay a loan, a lender will do a hard credit check.

Pre-approval for refinancing typically includes a credit check to see if the borrower is eligible for a new line of credit. They have previously agreed on a rate and are now applying for approval from the lender. Hard draws can have an impact on borrowers’ credit ratings because they are actively asking for a new line of credit.

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