A “soft pull” (also called a soft inquiry) on a credit report occurs when a person or organization reviews credit information without it being tied to a formal application for new credit. In the mortgage industry, soft pulls are commonly used during the prequalification process, allowing lenders to obtain a general picture of a borrower’s credit profile without affecting the borrower’s credit score. Soft inquiries may also occur when individuals check their own credit reports or when companies conduct background or promotional screening. Because a soft pull is not considered a request for new debt, it is not visible to other lenders and does not negatively impact credit scoring models.
For mortgage purposes, a soft pull helps lenders estimate whether a borrower may qualify for financing before proceeding to a full loan application. The information obtained can include credit score ranges, payment history patterns, and outstanding obligations, but it is generally less comprehensive than the report obtained through a hard pull. Borrowers often use mortgage prequalification based on a soft inquiry to evaluate potential loan options and affordability before committing to a formal application. If the borrower later moves forward with the mortgage process, the lender will usually perform a hard pull to complete underwriting and make a final lending decision.
