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Credit Scores and Reports: How Long is My Credit Report Good For?

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Real Estate Agent with KW Hometown 1756879

Credit Scores and Reports

How Long is My Credit Report Good For?



Credit Scores and ReportsCredit reports expire 90 days from the date the credit report was pulled, this is for both purchase and refinance transactions.  For construction and construction-to-permanent financing a credit report is valid for 120 days. This is important to keep in mind as often the time-frame from the day of credit pull to the day of the transaction's closing can easily be over 90 days.

In many cases a new credit report pull will not alter a mortgage approval, but it is possible to have a credit score go from great to not-so-great, or in a worse case scenario, the credit score could drop to a point where a mortgage approval is not possible.

Additionally, if a credit score drops, than the loan can suddenly become very costly. This is not necessarily a lender charge, but a pass-through charge from Fannie Mae. 

There really is no substitute for a sound education in the credit scoring model. Those who take note ahead of their mortgage approval to restore and maintain their credit will save $1,000's, even $10,000's in interest and fees.

For additional information regarding credit scoring and credit restoration, take some time to read through the articles below. As always, if you have any questions feel free to send an e-mail or call!

 

 

 

 

Credit Links

 

Credit Scoring - What Makes Up My Credit Score? (1 of 6)Credit Scoring System

Credit Scoring - Payment History (2 of 6)

Credit Scoring - Balances (3 of 6)

Credit Scoring - History (4 of 6)

Credit Scoring - Mix of Accounts (5 of 6)

Credit Scoring - Inquiries (6 of 6)

 

 

 

 

 

Steve Kappre is a Mortgage Planner with Treasury Mortgage, a subsidiary of Aurora Financial Group. For more info check out:

Contact Steve Kappre directly: 856-419-3561 | Subscribe to Steve's blog via e-mail

 

 

Comments(18)

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Sandra Scott
DPR Realty - Payson, AZ
REALTOR of Choice! Payson, Pine & Strawberry, AZ

Good info...I can never be sure I'm making true statements to my clients about whether shopping with several mortgage brokers will hurt them or not.

Nov 25, 2009 02:46 PM
Stephen Kappre
KW Hometown - Mantua, NJ
Helping You Home

Sandra - If you have about 30 minutes, read the articles above. It should answer just about everything you need to know. Really. And you will use the information for you and your clients for the rest of your life. It's like being able to type fast - you'll use the info almost every day. If you have any other questions, please ask!

Nov 25, 2009 02:49 PM
Liz Moras Migic
Chilliwack, BC
Chilliwack, British Columbia - Realtor

Oh gosh I love that!  I'd love to reblog it!Happy thanksgiving!:-) 

Nov 25, 2009 03:48 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Steve - this is great information. I don't think most folks give much thought to this issue, and yet given how long some transactions can take, this is pretty important. Yet another reason for buyers to not make any major purchases, take on new cards or close out existing ones.

Jeff

Nov 25, 2009 05:45 PM
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Hi Steve: I can't resist the temptation: if you have some clients with credit issues then think of my credit repair company!

:)

Nov 26, 2009 12:53 AM
Mesa, Arizona Real Estate Mesa Arizona Realtor
Homes Arizona Real Estate LLC - Mesa, AZ
AzLadyInRed

Steve, great information. As Jeff mentioned, I think more people need to pay attention to their credit scores!

Nov 26, 2009 02:25 PM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

Good reminder for us to warn our clients not to go out and buy big ticket items before closings!

Nov 26, 2009 03:54 PM
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

It always worries me when my buyers feel the need to "shop" for a loan from among four or five different lenders thereby opening the possibility that their scores will be adversely impacted.

Nov 27, 2009 12:41 AM
Stephen Kappre
KW Hometown - Mantua, NJ
Helping You Home

Liz - You are more than welcome to reblog.

Jeff - It never ceases to amaze me the things people do WHILE buying a home. I have some awesome stories regarding that ...

Teri - No doubt

Lisa - :)

Nov 27, 2009 12:41 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Hi Steve!  Great article--now I have a question!  If you short sale your property with a perfect credit score, and you apply for a loan based upon closing the short sale of your current residence (got in WAY over their heads and are using gift money to purchase a new home that is much more affordable for them), can that be done?  How soon will that short sale be reported to the credit bureaus? 

Thanks!

Nov 27, 2009 04:16 PM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

excellent credit scoring series Steve!  I think you should make a post out of Debe's above question!

Dec 02, 2009 12:25 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Great idea, Renee!  I have someone in that situation right now and am just curious as to how that works and how it affects your credit score-and for how long.

Thanks, Steve!

Dec 02, 2009 12:59 AM
Stephen Kappre
KW Hometown - Mantua, NJ
Helping You Home

Debe - I've been thinking about this since you asked it ;) Ok so seller is buying new home, and assuming he is getting a mortgage on his new home, I would think the new mortgage lender would want to see the HUD from the sale of his current home, at which point they may see that it was a short sale (would that be noted on the HUD?). I have not had this situation so I don't know how a short sale shows for the seller on the settlement sheet.

As far as reporting to a credit agency, assuming buyer is selling/buying in a short amount of time, or even the same day, then I don't believe it would show on the credit that fast. I would estimate 30-45 days to show up. It will also depend on how it was notated on the credit report as well, as I presume there is some variation as to how lenders report these situations. I'll ask matt for his 2 cents as well, and try to ask some experts to chime in as well.

Dec 02, 2009 03:53 AM
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Hi Steve: My 2 cents.  First - The HUD will document the sale of the property and the purchase price.  It will not show that it is a short sale.  If the new lender is smart they will see the sales price is lower than the old mortgage balance and inquire if the seller came up with cash to pay the difference.  Most lenders aren't that smart.

So the short answer is yes, you can provide the HUD which will document the sale and the credit report won't reflect it for probably 15-45 days.  I have some banks that seem to take forever to report it as well.  I have a client now with a GMAC short sale and they haven't updated his mortgage on the credit report in 8 months (I have no idea).

Believe it or not this is a perfectly legitamate loan.  There is no question on the 1003 loan app that asks "Did you recently have a short sale?" so the borrower will never be lying and all documents will be accurate.  You may want to avoid producing the sales contract as it probably says "subject to bank approval".

:)

Dec 02, 2009 05:09 AM
Stephen Kappre
KW Hometown - Mantua, NJ
Helping You Home

Matt - Right on. However, I don't know the last time an underwriter approved a loan, where the sale of a property was contigent on a purchase of a new home, and where the underwriter didn't ask for the agreement of sale. I've talked to people about this before - and some scenarios play out such as ... 1.) how does it report on the credit report if time has elapsed, or 2.) If it is a same-day closing, and if by chance the underwriter didn't read the sales contract to state that the sale was contigent upon bank approval (which would be a BAD underwriter) - than a client possibly short sale and buy a new place this way ...? Maybe. I still think any underwriter worth anything would calculate the net profit/cost of sale based off of the numbers on the AOS and than come up with a negative result which would raise red flags.

My boss is currently discussing this very same topic with a Realtor friend of his. He is currently searching the guidelines for this situation.

Dec 02, 2009 05:38 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

WOW!  You guys ROCK!  You should put this in a post--get credit for all of your hard work!!  Thanks again and I'll let you know how it pans out.

Dec 02, 2009 06:54 AM
Stephen Kappre
KW Hometown - Mantua, NJ
Helping You Home

Awesome - I'd love to hear the results!

Dec 02, 2009 06:58 AM
Stephen Kappre
KW Hometown - Mantua, NJ
Helping You Home

UPDATE:

FNMA calls it a preforeclousure sale.... Two years from sale date and no exceptions per guidelines.

Still trying to get FHA information

Dec 02, 2009 07:08 AM
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