Will Your Credit Score Be Affected by Applying for a Mortgage

Collier Swecker video blogs about the effect that applying for a mortgage and/or having a mortgage lender pull a homebuyers credit has on their credit score.  It is undisputed that inquiries from potential people seeking to borrow money decreases that persons credit score. One thing that many people do not realize is that people  attempting to get a mortgage (car and student loans too) can shop as many lenders as they wish within a 30 day period and no matter how many inquiries are made, their credit report / score will only be affected as if only one inquiry  was made. Shop away if you want too! Usually the effect on the credit score from a mortgage inquiry is less than 5 points and those points are quickly recovered with time. I would not worry about ever having a lender pull a credit report because even if you have a bad credit score, a good lender can advise you on the best way to get your credit score higher. More important factors that affect your credit score are how timely you pay your bills and your overall debt burden as indicated on your credit report. If you have any questions or comments email me at Collier@MegaAgents.com, visit my blog at www.CollierSwecker.com or my website at www.MegaAgents.com.

Buyers Need to Check Credit Reports Before Applying for a Mortgage

Collier Swecker video blogs about how every person considering buying a home in the next 6 months needs to review their Credit Report prior to visiting a mortgage lender to get pre-approved for a mortgage. Federal Law allows for every person to receive a copy of their credit report once every 12 Months from the “big 3” credit reporting agencies, Experian, Transunion, and Equifax. In order to receive a copy of these credit reports, you simply visit www.AnnualCreditReport.com and request your credit report. It is very important that you don’t confuse www.FreeCreditReport.com with www.AnnualCreditReport.com. AnnualCreditReport.com’s credit report copies are actually free whereas FreeCreditReport.com’s are not free, despite the name. If you see anything that does not appear to be accurate, immediately start the process to fix any issues that you find. It is so much easier to fix credit issues before you start the home loan process.  If you have any questions or comments email me at Collier@MegaAgents.com, visit my blog at www.CollierSwecker.com or my website at www.MegaAgents.com.

Lenders Are Pulling Your Credit The Day Before Closing in Birmingham Alabama

Collier Swecker video blogs about Fannie Mae’s (and undoubtedly most other loan programs) decision to require Lenders who are originating mortgages that will be sold to Fannie Mae to pull a credit report on the borrowers immediately before closing.  This is was an understandable decision for Fannie Mae because many borrowers who get a finalized sales contract on a home and get a loan approval for the purchase, get so excited that they run out and buy furniture and other furnishings and do so by opening new lines of credit at various stores. This causes the borrowers monthly obligations to change due to the new debt that has been created and the borrower may now not meet the Debt-to-Income requirements that were required by the Lender under the original approval.  All borrowers need to ask their lender if it is ok to make major purchases after they receive initial loan approval but prior to closing, or else they may find that they may have a home to put that brand new furniture. In reality, I have been advising my clients not to even think of opening new lines of credit until after the loan has closed and all monies dispersed! If you have any comments or questions about Lenders wanting a second credit report right before closing, email me at Collier@MegaAgentRealEstate.com or visit my website at www.MegaAgentRealEstate.com.