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What Is A Mortgage Credit Report?

Mar 21, 2021

When applying for a mortgage, you will be asked to pull your credit report. This report will help the lender determine your risk as a borrower and assess your loan eligibility. While this may sound scary, your loan officer can explain your report to you and outline how the underwriter will analyze it.

 

What Is Included on A Report?

Think of your credit report as a history book of your credit. It will include:

  • Your credit score
  • Payment history
  • New accounts opened
  • Accounts closed
  • The age of your accounts
  • Your credit utilization
  • Delinquent accounts
  • Tax liens and judgments

 

What Should You Check on Your Report?

You should check your credit report for accuracy. If any information is inaccurate, you will want it corrected.  

 

Personal Information

Is your personal information displayed correctly? This includes:

  • Full name
  • Social security number
  • Date of birth
  • Past and current addresses
  • Phone number

 

Credit History

This report will include your entire credit history. Check for items and dates that may not match up with your experiences.

 

Public Record

You will want to make sure you are not suffering from someone else’s mistakes. Check for judgments, tax liens, and bankruptcies. If any of this information is incorrect, it is essential to correct it ASAP.

 

How Does Your Credit Report Impact Your Ability To Get A Loan?

Your credit report will impact your mortgage loan in two distinct ways:

 

Interest Rate

If you have a lower credit score, you are deemed a riskier borrower. This risk is offset by increasing the interest collected every month. This is not the only thing that determines your rate, but you are more likely to benefit from a lower interest rate by maintaining a healthy credit profile.

 

Eligibility

When underwriters look at your eligibility, they will scan your credit report for any red flags, such as late payments or delinquent accounts. Depending on the seriousness of the issue, it may complicate the loan process.  

Curious if you qualify for a mortgage? Click here and speak with one of our licensed mortgage professionals today. Even if you have poor credit, we can help put a plan to increase your scores and get you into a home in no time.