Home Buying in 30144>Question Details

Tina Daniels, Home Buyer in 30144

How many times is my lender going to check my credit before I close on my house?

Asked by Tina Daniels, 30144 Fri Jul 8, 2011

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The answer will actually depend on the specific lender. Typically, a credit report is valid for 90 to a max of 120 days from the date it is pulled. If you have not closed by the expiration date of the report, a new one must be pulled.

Last year, Fannie Mae sent out an alert reminding lenders to have measures in place to determine whether or not a borrower has obtained additional credit since the initial inquiry. Many lenders took this to mean that a new credit report is required immediately prior to closing. Even though Fannie Mae clarified that this was not their intent, many lenders still do this. Instead of a new report, Prospect Mortgage monitors the existing credit report. This means that no new scores are pulled, but we are alerted of any new inquiries.

There is no such thing as a soft pull in the mortgage world. All credit report inquiries by a mortgage company are hard pulls. Soft pulls do exist in other industries, not mortgage is not one of them although I do hear this myth quite often.

Should you close on your home within 90 days of the intial credit inquiry, that may be your only one or the company might pull one more time.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Conventional | FHA | FHA 203K Renovation (Streamline & Consultant) | HomePath® |
HomePath® Renovation | VA | USDA | GA Dream
1 vote Thank Flag Link Fri Jul 8, 2011
I saw the other answers and they are both correct on the number of times that credit can be checked, but I wanted to add another point. A lot of homes today are being bought as short sales, and short sales can take longer than the normal process that most people think about. I have clients now purchasing short sale properties that have taken over 2 months already. Sometimes, the initial pre approval will expire during this time, so that would also impact the number of times credit reports are run. Bottom line is that once you start the home buying process, you do not want to add any credit to your portfolio.
0 votes Thank Flag Link Fri Jul 8, 2011
Every day if they want, they want to see that nothing new happens with your credit, it is not uncommon for people buying a home to be silly enough to change credit ratings in the middle of a sale, One of my sales fell through because the potential buyers were on the fine line to begin with, they put the offer inm, got the loan acceptance and in the middle of the sale process went out and put a little over 5 thousand dollars on Visa and Mastercard to buy new furniture that would fit their new living room and Bedroom! This of course showed up about 10 days before the closing, the bank declined the mortgage and they had furniture, a lower credit score, and no new home!
0 votes Thank Flag Link Fri Jul 8, 2011
Tina it is as many times as they want basically, usually it is 3 though, a soft credit at initial application, a hard copy once it hits under writing and once more right before you close to make sure you have not bought anything that changes your debt to income ratios.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Jul 8, 2011
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