My mortgage broker has pulled my credit and given me preapproval, will the lender pull my credit again?
by Mortgage Rates on Sunday, October 10th, 2010 | 10 Comments
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Each place you deal with needs to pull your credit, and have your approval to do so. Sounds normal to me. Pulling it twice won’t hurt anything, so it’s ok.
If your broker wholesales the loan to another lender then the lender will often times pull their own report but, your broker should include the report he/she pulled with the loan submission.
During the extended buying period, you need to insure your credit report is accurate and reflects a positive light. Now is the time to follow up with in writing for any accounts you are closing, etc… You will probably have to sign a release, it’s common for lenders to cover all the basics.
It depends on the type of credit report that was pulled for your pre-approval. Ordinarily, a full mortgage credit report gets information from all three major credit bureaus. If that’s what they pulled, there shouldn’t be a need for another one, provided you close within 30 days of the report.
If you’re concerned about something popping up on your credit AFTER the report was pulled, that’s a different problem. When you sign the documents at closing, you will sign a typed form of your mortgage application that will include language by which you swear that nothing important has changed from the time you applied.
If this is the concern, fess up to your loan officer. The loan officer is motivated to get your loan closed. Lots of them don’t get paid unless your loan closes and all of them want repeat business and referrals. The loan officer will give you an idea whether the changes are important enough to disclose and, if so, how to approach it in terms of the correct wording.
Yes they will
most ethical lenders don’t need to pull it again since your report is valid for 30 days. assuming it closes within that time then there is no real need to pull it again. most likely they will but I see no real reason for them to do it other than to charge you some extra nickels and dimes to your overall fees.
Credit is checked again just before closing because some people buy cars, etc., before closing and that changes their credit rating.
I want to say that you were correct in selecting a mortgage broker to do your loan. Most people go to a bank or credit union thus limited themselves to a variety of lenders the broker is signed up to have them underwrite their loans.
Now to your question, I have never had a loan submitted where the investor did not pull a credit report, after the loan was submitted to underwriting and your broker was correct in telling you this.
The lender or investor could very well pull your credit report again just prior to loan docs being signed or a couple of days before closing to ensure the clients have not purchased an item that will put their ratios out of wack.
Your credit report is normally good for approximately 90 days after the broker has pulled it.
I hope this has been of some use to you, good luck.
“FIGHT ON”
If the broker pulled your credit, a lender may have to pull their own report as part of the application process. I work for a lender and we only re-pull it if more than 30 days have elapsed.
If you are qualified for an “A” Paper loan. Most likely the report will NOT be repulled.
We(mortgage brokers) can reissue your report into the automated underwriting engines from Fannie Mae or Freddie Mac.
This reissued report will be valid for 120 days or 180 days if you are purchasing a new construction home.
If the loan is a Sub Prime loan “BCD” paper the will without a doubt repull your report.
I wouldn’t be concerned because you are allowed to have multiple pulls from the same industry.