Those about to begin the house hunt may be advised to obtain a pre-approval from a lender before they get started. That's generally good advice because it makes sellers take your offers more seriously – among other perks. However, some with touchy credit issues may worry about the effect such a move could mean. Read on to find out more.

What is a Pre-approval and Why Do Buyers Need One?

You might consider a pre-approval a precursor to a mortgage approval. It's a lot less invasive than a mortgage approval, but it still provides buyers with vital information about how much of the house they can afford. This then informs the buyers' search methods by allowing them to focus on price points that they are more likely to gain an approval on for financing when the time comes.

Dings and Credit Scores

Anytime your credit is checked by a potential lender, the score can be negatively affected. Most home buyers are nervous about their credit and understandably so. The difference in a few credit score points could make them less attractive to a lender and thereby affect their interest rate or even their chances of an approval altogether. Even a small variation in interest rates can add thousands of dollars in additional debt to a mortgage. However, the benefits of applying for a pre-approval (and winning it) are greater than the dings. For the record, a pre-approval affects your score the same way applying for an auto loan, credit card, or even a mortgage does -- it's considered a hard inquiry.

The Good News About Credit Dings

Not all credit dings are equal. To make the most of your pre-approval while minimizing its impact, follow these tips:

• Before you consider owning a home, shape up your credit as much as possible. You can raise your score by paying off debt, ceasing to apply for new debts, and paying your bills on time – perfectly on time.
• Apply for a pre-approval only when your credit is good, and you are ready to seriously look for a home. That's because pre-approvals are usually only good for a limited time. The biggest reason though, concerns your mortgage application. Credit dings from similar creditors within a given period tend to have less of a negative effect on your score. That allows consumers to apply for home loans from several creditors without it tanking their score. The time allowed varies, but you should try to do all your credit impacting moves within about 45 days.

Talk to a lender for more help with your pre-approval issues.