When the customer begins their application, first, they have a soft credit pull as part of the pre-qualification process. If they choose to finish the application, there will be a hard credit pull.
Pre-Qualification: Soft Credit Inquiry
When the customer begins their application, there will be a soft credit pull to check if they are pre-qualified. If they are pre-qualified, they will see that they are likely to be approved based on the information provided.
If they are not pre-qualified, they will see a warning that based on the information provided, they may not be approved. It will remind them of the credit requirements and lets them know that if they finish their application, they will receive a hard credit inquiry.
Application Submit: Hard Credit Inquiry
When the customer submits their application, there will be a hard credit inquiry run.