How do you find the best loan for you without sacrificing your credit? It takes a bit of planning.

Firstly, you need to understand that although they sound the same, pre-approval and pre-qualification are not interchangeable. Often, you don't need to qualify for both at the same time.

But they can both affect your credit, says Jeremy David Schachter, a mortgage consultant and branch manager at Pinnacle Capital Mortgage in Phoenix, Arizona.

Pre-qualification: This is the initial starting point of the mortgage process and is usually very simple. A pre-qualification is essentially a conversation with a lender - conducted online or over the phone - that gives you a general idea of your financial situation.

Since you're usually providing information to the lender, not the other way around, pre-qualification usually doesn't matter when it comes to the actual purchase. However, some of the more formal pre-qualifications do affect your credit, causing your score to temporarily drop a few points.

Pre-approval: This process is much more involved and is a key step in getting a mortgage. You'll need to fill out a mortgage application (and usually pay an application fee) and provide a series of documents to the lender so they can check your finances and credit. Pre-approval is the first requirement for you to start your home buying journey.

But you'll need to pay more for it.

Schachter says, "It's considered a 'hard pull' when your credit is checked." Any time this happens, it lowers your credit score.

How much will my credit score be affected?

The damage to your credit could be as little as a few points or as high as 14 points or more, depending on your credit history and the number of other loans or credit accounts you've applied for in the last 90 days, Schachter says. (That's why your lender or real estate agent will always tell you not to make any big purchases - new car, new furniture, etc. - until you buy a home.)

) The impact is also felt because of your other recent credit activity (have you recently missed a payment or maxed out a credit card?).

Schachter says the three major credit bureaus (TransUnion, Equifax and Experian) understand that borrowers shop around during the mortgage process. As a result, depending on the credit bureau, multiple mortgage-related credit inquiries may - but not always - be combined and treated as a single inquiry with only one credit score deduction in a given time period (usually 30 days).

So how many enquiries is too many?Schachter says there's no magic number. Three is OK, but is four too many? Unfortunately, it's hard to know for sure. Proceed with caution and don't apply recklessly.

How long will my credit be affected?

Several hard pulls can lower your credit score for up to 90 days. But the exact amount of time depends on the credit bureaus and the details of an individual's credit file, Schachter says.

Pre-qualification has a much smaller impact on credit than pre-approval. But if you're planning to buy a home in the near future, you may want to go right ahead and get pre-approved.

How can you save your credit?

Schachter suggests starting by talking to several lenders (no credit required) to make sure you're working with the right lender and comparing rates.

Then, if you decide to seek multiple pre-approvals or pre-qualifications, make sure the potential lender calls your credit file within a few days (not weeks or months later) so that the damage from multiple enquiries is minimal.

Remember, the clock is ticking: Pre-qualifications and pre-approvals have expiration dates - most are usually 60 to 90 days.

If you don't start your search within that time, you'll have to start over. That means more hits to your credit.