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Why Mortgage Lenders Pull Your Credit Score Twice

By
Services for Real Estate Pros with Think Glink Media

In today's new world of mortgage finance, lenders are tightening credit requirements. It's far more difficult to get a mortgage today than it was five years ago.

Even borrowers who have near-perfect credit histories with credit scores in the 800 range are being rejected for reasons that seemingly make no sense-like a small investment loss taken on a tax return, or an extra $500 deposited into a savings account that couldn't be adequately explained. 

Things that you might not think of as being a big deal could hurt your credit score and mortgage lenders are on the lookout for changes to your creidt history.

Opening a credit card from a store does more than get you a discount, it also hurts your credit score.

The credit card I opened had only a $2,000 line of credit. I charged several hundred dollars worth of clothes and paid it off before the end of the month.

I saved 20 percent on the clothes. I cost myself thirty points in my credit score.

This experience also explains why mortgage lenders will pull your credit history at least twice between the time you apply for and close on your loan.

Read the full article: http://real-estate.equifax.com/2010/08/why-mortgage-lenders-pull-your-credit.html

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