Zillow uses soft credit checks (soft pulls) for most activities like rental applications and mortgage pre-qualification, which do not affect your credit score; however, a hard pull might occur later for a verified mortgage pre-approval if more documentation requires a full credit review, which can impact your score. A soft pull checks your credit for informational purposes (like estimating affordability) without signaling new credit, while a hard pull is for actual lending decisions and can lower your score temporarily.
What makes Zillow Home Loans* unique is that we only use soft pulls for mortgage pre-qualification and pre-approval, meaning there is no impact on your credit. Hard inquiries are triggered when the lender checks your credit with the intent of making a decision about your application.
Even then, Zillow uses a third-party service which means your credit is soft-pulled, but Zillow still does not have access to your score, credit report, or other credit information. If you'd like to track your credit for free, go to your Rent Reporting dashboard and enroll in Credit Tracking from there.
What credit score do I need to qualify for Zillow Home Loans? An applicant is required to have a minimum FICO credit score of 620 for most loan types. Your payment history, amount of existing debt, new credit, length of credit history, and credit mix make up your FICO score.
Who provides the credit report and background check? The credit report is provided by Experian, one of the three major credit reporting bureaus. The background check is performed by CIC, a leader in providing accurate criminal and eviction data.
Zillow Home Loans requires a minimum credit score of 620 for most loan types. However, FHA loan applicants may qualify with scores as low as 500, provided they have a higher down payment or meet other compensating factors.
Zillow's background check provides landlords and property managers with a detailed report on prospective tenants. This report includes identity verification, criminal history, eviction records, and credit information. All this information helps landlords make informed rental decisions.
Yes, someone with a 500 credit score can potentially buy a house, primarily through an FHA loan, which allows approval with a score as low as 500 if a 10% down payment is made, though many lenders prefer scores of 580+ for easier terms. Other options, like VA loans for veterans, have no federal minimum, but lenders set their own, often around 580-620. However, a 500 score will likely mean higher interest rates and more stringent lender requirements, so improving credit or finding specialized lenders is key.
Most background and credit checks are available immediately. On rare occasions, it can take up to 24 hours to produce a background report, but we will let you know if this is the case. If your report is delayed, CIC our background report provider may need more information.
Don't rent unseen unless you've verified the property with a trusted source. Beware: Red flags include unusually low rent, claims of urgency, and requests for payment before you've seen the rental.
When renting a home, credit history plays a role, but the standards aren't normally as high as they are for buying a home. Landlords typically want a minimum score of 620, although the credit score isn't the only factor they consider.
Renters typically hear back about an apartment approval 1-3 business days after submitting their rental application. Sometimes, an apartment approval can take longer if more information is requested, there are delays in the background and credit check review, or you're applying with roommates or a co-signer.
Red flags on a background check are inconsistencies or negative findings like criminal records (especially violent, theft, or fraud), false information on applications (education, employment dates), poor credit history (for financial roles), failed drug tests, bad driving records (for driving jobs), negative references, or unprofessional social media activity, all suggesting a risk to the employer's trust, safety, or financial stability. Lying or omitting information is often a bigger issue than the underlying event itself, signaling a lack of integrity.
Income verification
To show proof of income, you may be asked to provide copies of pay stubs, tax returns, or bank statements with consistent deposits. Income verification is included in a background check to ensure you're able to cover the cost of rent and make on-time rent payments.
For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.
The 3-7-3 Rule in mortgages isn't a loan type but a federal timeline from the TILA-RESPA Integrated Disclosure (TRID) rule, ensuring borrower protection by mandating disclosures within 3 business days of application, a 7-business-day wait between the initial Loan Estimate and closing, and another 3-day wait if significant changes (like APR) occur, giving borrowers time to review costs before committing to a loan.
To afford a $300k house, you generally need an income between $70,000 and $90,000 annually, depending on your down payment, credit, and existing debts, with a common guideline being your total housing costs (mortgage, taxes, insurance) should be under 28-36% of your gross monthly income. A larger down payment (like 20%) and lower other debts (student loans, car payments) allow you to qualify with a lower income, potentially around $75k-$85k, while less down payment or more debt might push the required income towards $100k or more.