How Often Will A Full Credit Report be Pulled During the Mortgage Approval Process?

There  is a myth that a credit report is pulled several times during the mortgage process but the truth is that it is typically only requested once, depending on the timing of a borrower’s transaction.

A credit report is pulled at the onset of the mortgage application process. That credit report is obtained from a credit bureau that pulls information from the three repositories: Equifax, TransUnion and Experian. Each company uses the FICO (Fair Isaac Corporation) software. A credit report is good for 90 days; so as long as a home is purchased and closed in this time frame, this will be the only credit report pulled.  But keep in mind, that a lender is tasked by compliance regulations to ensure that a borrower’s debt situation has not changed (for the worse) in a way that can impact a borrower’s ability to repay the mortgage obligation up through the close date of the transaction.

There could be good reason to re-pull a report during the mortgage application process.

• A borrower may have made some significant positive improvements to their credit profile that they hope will improve their score. 
• A borrower may be added or deleted from the overall loan consideration.

However, “pulling” a new credit report is different from “monitoring” to confirm changes to the credit picture.  Monitoring can be done several ways.  

• Some systems provide constant updates when a credit situation has worsened (examples: new debt added, higher balances, and/or new derogatory items).   Lenders will be automatically updated by their credit reporting bureau so that these changes can be taken into account.  
• Another way is a one-time update. Generally completed within the last seven days prior to the scheduled closing date, a ‘soft pull’ is done to verify the credit profile is still in good standing.

Neither of these credit monitoring methods affect credit scores or create an ‘inquiry’.

The best rule of thumb when applying for financing as large as a mortgage is to delay any other large purchases, and to avoid having your credit looked at by other creditors. During a relocation this is sometimes difficult as there are purchases that need to be made and sometimes short-term apartments to be booked. Landlords or short term living units will often want to see a consumer’s credit profile.    These ‘inquiries’ will need to be explained during the mortgage application process. 

SIRVA Mortgage, Inc. is the smart, convenient choice for financing the purchase of your new home. As a mortgage banker, SIRVA Mortgage not only does the rate shopping for you, but controls the whole process from start to finish.