how many times does a mortgage company check credit during processing a new mortgage loan?

Asked by Peace, Caballo, NM Mon Jan 17, 2011

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9
Dallas Texas, Agent, Dallas, TN
Mon Jan 17, 2011
Your credit is pulled when you apply for a loan THEN right before closing. Why a home buyer SHOULD never apply for credit OR purchase anything till you have closed and keys in your hand

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
1 vote
, ,
Wed Sep 25, 2013
I think there's some confusion here, lenders aren't doing "hard pulls" whenever they want, they're doing a hard pull every ~90 days since a credit report is typically only good for that long. Most lenders from my conversations with friends in the industry are going with "soft-pull" monitoring to ensure borrowers aren't taking on new debt before closing (new cars, new credit cards, new houses, etc).

As others said, once you apply for a mortgage, don't apply for any credit without asking first. Obviously there are some situations where getting additional credit may be required but it's always best to keep your loan officer in the loop because as I tell my clients, "I can't fix (advise on) a problem I don't know exists".
Web Reference:  http://RobWeber.com
0 votes
Peace, Home Buyer, Caballo, NM
Tue Jan 18, 2011
thank you Andrew- good to know :)
0 votes
, ,
Mon Jan 17, 2011
Hello,

A credit report is good for up to 90 days with most lenders processing, underwriting and closing the loan.

If the mortgage company is brokering the loan out to another bank, then the bank purchasing the loan may run your credit report again.

Ulitimately, several credit report inquires on a borrower applying for a mortgage does not negatively effect the fico scores enough to make a significant difference.

Regards,
Andrew
0 votes
Peace, Home Buyer, Caballo, NM
Mon Jan 17, 2011
Thank you Rudy- I dont have any repairing. I have high 700 scores low 800. I just wanted to know in case i made a purchase- say like 5000.00. But I think I will just wait until after since the home means to much to me. :)
0 votes
, ,
Mon Jan 17, 2011
Hi, Peace. Unless their some credit rehabilitation (i.e. rapid rescoring or adding supplements to reflect rental history or verify student loan are still in deferment, ect---only the first of which exactly requirers the repulling of your credit score) the lender should not need to repull your credit but once every 90 days.
0 votes
J, Agent, Greensboro, NC
Mon Jan 17, 2011
New programs have been implemented and are streaming through the banking industry that will allow lenders to pull credit information as often as they would like during the underwriting process. Keep the "status quo" and you shoud be fine. Thanks!
0 votes
Peace, Home Buyer, Caballo, NM
Mon Jan 17, 2011
thank you so much for the quick response. good to know :) I will do nothing but pay my bills- and pay things off.
0 votes
Lisa Heindel, Agent, New Orleans, LA
Mon Jan 17, 2011
It will vary from lender to lender, but typically they will check your credit at the beginning of the application process and then again shortly before closing (it could even be the day of closing) to verify that your financial position has not changed since the original application.
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