I know a little something about this subject on the credit side. I use to work with loan officers from banks and credit unions. I was my job to update consumer credit reports. That meant that I had to call every single creditor or collection agency the consumer owed, and verify the most up to date balance and status of the account. Anyway, I noticed some issues regarding mortgage loans. 1. Consumers should always pull their personal credit report at least 60 days before applying so they can review, catch errors, and dispute for correction before hand. 2. When applying for the loan make sure the loan officer knows what social security number belongs to what spouse if filing jointly. Loan officers are one of the biggest sources for causing mixed credit files between spouses because they switch the numbers when pulling the credit reports. That can be a problem if one spouse has worse credit then the other spouse. Sometimes a lender will initially look at both spouses credit reports then decide that one has good enough credit to get the loan by them self. If the file gets mixed it will delay the closing of the mortgage loan. Until it is fixed, and I realize that time is often an issue for people applying for mortgage loans. 3. I notice that loan officers do pull consumer credit reports more than once, if there is an underwriter or some other direction also needing to see the credit report. They don't pull the one report & share it with the others which they should do. If there are errors on the credit report then the consumer will need to dispute with the credit reporting agency, usually this can take 30 days, but if the consumer notifies the credit reporting agency that the dispute regards a pending application for a mortgage loan they can rush processing. Might get it moved up to just two weeks, or if the consumer has the money for the extra fee they may find a company that deals with rapid rescoring, which can rush updates to within 48 hours, but it does come at a cost. 4. If the consumer has an authorized user account, make sure to point this out to the loan officer so that it is not included in the debt to income ratio. 5. If the consumer has a number of open accounts sitting with high credit limits, the loan officer might tell them that the accounts need to be closed, by all means stress to the loan officer that by doing this it will lower the utilization and drop the credit score, the final time they pull the credit report. Try to avoid this if you can. 6. Rule # 1, if a consumer owes any collection agencies, the update from the credit bureau processing RMCRs for the bank will wake up these collection agencies, and they will find out that the consumer is going for a mortgage loan, they will have their hand out expecting to be paid when the loan is processed. The mortgage lender too may require these accounts be paid. If the consumer has to pay a collection, then press the collection agency for payment in exchange for deletion - try to get the score up before the final credit report is pulled. 7. When the loan is final and the loan officer tell the consumer that payment to creditors will be sent out on a given date, that they don't need to send any payments due, the mortgage will take care of it. DON'T Believe the loan officer. Some times things happen to stall forwarding of final payment to creditors, this can cause a late and hurt the credit rating. A consumer should call the creditor to check if they received that payment from the mortgage company. If not make arrangements to pay the minimum and later request a credit be mailed back. It is better to over pay than to get a late. There are new laws saying that lenders can't see a late on the credit report and automatically raise their interest rates, but this use to be common. 8. That the mortgage company that just finalized your rate, would see the other lender's late listing their next account review and thus default the mortgage rate the consumer just got. So be vary careful in this matter. Hope this helps, Thanks
LOL > Funny you said that I was just going to the Feedback forum to ask what was wrong with the format, Every time I post it gets all thrown together. I assure you it was all separated when I started. Maybe you can clue me in on what I have to do to fix this, I promise I will rectify this situation just as soon as I educate myself on the fix. Ok I figured it out, next problem, the post I made no longer has edit option.
Happy to say I discovered my problem, I used copy & paste and that eliminated all of the original page breaks. I have e-mailed Lisa - Admin and she said she could edit to correct. Oh the edit option is there, but if you leave and come back it disappears. So you only have a limited time to edit.
