Many homebuyers often wonder if shopping for a home loan will affect their credit each time a lender pulls their credit report. 

It's a logical question and the answer is no, but the credit checks need to be done in a short period of time for your credit not to be affected.

Here's how it works - When a lender checks your credit, it's called a hard inquiry.  When these hard inquiries occur, it doesn't have an impact on your credit.  Typically, when you're shopping for a mortgage or a car loan the credit bureaus will cluster the inquiries to show that the consumer is shopping for the best loan. 

For example, if you start shopping for a new mortgage with five potential lenders and they pull your credit score within four weeks, it will look like one inquiry.

Keeping your credit clean is more important now than ever.  So, some ways you can do that is by making sure your identity doesn't get stolen.

Here are some tips on ways to prevent identity theft:

• Credit Monitoring - The best way to make identity theft a thing of the past is to have a credit monitoring service.  These services are usually less than ten dollars a month and could save you many years of misery.   These services also let you check your credit report and score anytime you want for free.
• Leave Your SS Card - One card you should never have on you is your Social Security card.  Leave it at home in a safe place.  If you're careless with this card and let it get into the wrong hands, it can cause major credit issues.
•  Lock It Up - If you can, get a locking mailbox.  Many neighborhoods don't have to worry about this, but there are thousands out there that do.  Mailboxes with locks are becoming more popular and easy to find because of identity theft.
• Shred Your Papers - Not shredding your personal documents makes it easier for criminal to access your information.  Your personal papers with your name, birthday, address, etc. gives criminals all the information they need to open new accounts in your name.  When they're successful, the will use a post office box to have that mail delivered, and you won't be the wiser for some time.
• Keep Your Card Hidden - Skimming has become prevalent at gas stations and restaurants.  So, keep your numbers on the card hidden at all times, you never know just who might be looking.
• Carry Cash - Carrying cash as much as possible lessens the chances of your cards information getting out.  Now, there are small scanners that capture all your information from the magnetic strip.  The card can then be cloned.  Restaurants are the most likely place for someone to clone your credit card.   Also, if you do use your credit card, check your receipt and make sure your credit card numbers are not left exposed.  Most systems x everything out, except the last four digits.  If your cards numbers are left exposed, scratch out all numbers except the last four with a pen.

Keeping your credit clean makes it that much easier to buy a home, and not just any home but your dream home.