Part of the homebuying process involves shopping around with multiple lenders for the best mortgage rate. But without a plan, the very act of shopping around can negatively impact your credit: A higher credit score helps you secure a lower mortgage rate, but a hard credit inquiry like the one lenders perform can decrease your score. Here’s what to know about shopping for a mortgage with minimal harm to your credit.

When exploring mortgage options, your credit score typically takes a hit when you obtain a mortgage preapproval from a lender. That’s because part of getting preapproved includes the lender checking your credit through what’s called a “hard” inquiry. A hard credit inquiry involves a lender pulling your full credit report from a credit bureau, with your permission, which helps t

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