Credit

One sure thing mortgage lenders can count on is they all run credit.

There are three major credit bureaus:

1. Experian

2. Equifax

3. Transunion

Finance companies, employers, vendors, and creditors may use one or more of the above credit report. Some may use one out of the three above. Others may average two credit scores from two credit bureaus. Others may use a tri-merger credit report which is the middle credit score. For example, a borrower may have the following:

1. Experian Score 540

2. Equifax Score: 640

3. Transunion 700

The middle credit score above is the Experian Credit Score of 640.

Mortgage brokers , correspondent lenders, Full-Eagle lenders normally run a tri-merger which mean they use a private credit monitoring agency (Credit Plus, CIC, Advantage, Xacturs). The credit monitoring service coordinates the administration of the tri-merger credit report which yields credit scores from each of the three credit bureaus. Each credit bureaus has its own credit score of the applicant. On the credit report, you will find the borrower’s name AKAs (also known as), curent and previous addresses, DOB, employment history for the past ten years, list of creditors, payment history, derogaory credit, type of credit, amount borrowed or credit limit on revolving accounts, date of last activity, hard credit inquiries in the past two years, credit disputes, collection accounts, charge off accounts, public records (bankruptcy. foreclosure, deed-in lieu of foreclosure, short-sale, tax liens, judgments and other public records).

NOTE: Just because a creditor is not listed on the credit report, does not mean the applicant is clear of the tradeline. All mortgage lenders will run a national third-party public records search. What this mean is public records not reporting on credit reports will get discovered by lenders. For example, if a shrewd credit repair consultant successfully removed a bankruptcy and/or a recent derogatory credit event), you can count on being discovered on the national third-party public records search.

Over 80% of mortgage loan applicants at Gustan Cho Associates are folks who coult not qualify at other mortgage companies. Statistics show 100% of all pre-approvals at Gustan Cho Associates close. The number one reason borrowers encounter stress during the mortgage process or a last-minute mortgage loan denial is due to the loan officer not properly qualifying borrowers prior to issuing a pre-approval. One of the largest factors the pre-approval is null and void is because the loan officer issues a pre-approval with not thoroughly reviewing line item per line iterm on the credit report. Here is a list on things to look for and ask the borrower in the mortgage qualification process prior to issuing a pre-approval letter:

1. Carefully look for credit disputes.

2. Borrowers cannot have any credit disputes on non-medical collections and no credit disputes on any derogatory credit tradelines.

3. Credit disputes is allowed on medical collections, non-medical collections with zero balance, and non-medical collection accounts with a total (sum of all collection account balance) of UNDER $1,000.

4. Lenders are allowed to allow credit disputes for derogatory credit tradelines that are two years old or older from the date of last activity.

Credit Scores, Credit Payment History, and Public Records on Credit Reports Determine Your Home Loan Eligibility, Mortgage Rates, and a Comprehensive Overview on The Applicant’s Ability To Repay The Mortgage Loan and The Borrower’s Ability on How Much House They Can Afford.

https://www.youtube.com/watch?v=tuDtVACDpHM