Will taking out a mortgage affect your credit score?
This is definitely a trick question. While IT IS true that the first time you apply for a mortgage loan, your score might dip a couple of points because of the inquiry, it’s also true that your score might be affected at first when you take out a mortgage, because you will suddenly have a brand new account with a large balance and no payment history.
In time, your mortgage might even help your credit score a bit. As the months go by and you keep on making payments on time, you will increase the account and your payment history.