Credit Report Analysis By Mortgage Underwriters


Credit Report Analysis By Mortgage Underwriters

Your credit report will be through a thorough credit report analysis by mortgage underwriters.  Your credit report contains personal information about you, your employment, your work history, your date of birth, your social security number, your address, your previous addresses, your creditors, your open credit accounts, your closed out credit accounts, your credit payment history, derogatory credit items such as late payments, public records such as bankruptcy, foreclosure, deed in lieu of foreclosure, short sale, judgments, collections, charge offs, and any other credit information.  Credit report analysis by mortgage underwriters will not just be an underwriter reviewing your credit report, but will also do a third party Data Verify check on public records to make sure that there are no public records that is not showing up on your credit report. Your credit report is a full personal and financial profile of yourself.   In the mortgage qualification process, the information on your credit report is used in the Automated Underwriting System to determine whether or not you are approve/eligible per DU FINDINGS and/or LP FINDINGS.

Automated Underwriting System And Credit Report Analysis By Mortgage Underwriters

Fannie Mae’s and/or Freddie Mac’s Automated Underwriting System will be analyzing every aspect of your credit report.  Automated Underwriting System is an automated approval system that determines whether or not a mortgage loan applicant is granted an approve/eligible for a residential mortgage loan.  It is extremely difficult for a mortgage loan applicant to get a mortgage loan approval without getting an automated approval first from Fannie Mae’s or Freddie Mac’s Automated Underwriting System.  The Automated Underwriting System will pick everything up from the mortgage loan applicant’s credit report.  If there are errors on the mortgage loan applicant’s credit report, it will affect DU FINDING and/or LP FINDINGS on determining the approval on the mortgage loan applicant.

Credit Report Analysis By Mortgage Underwriters And Errors On Credit Report

Every consumer should check their credit report at least once or more times a year.  The three credit reporting agencies; Transunion, Experian, and Equifax; are not perfect and there is a lot of errors that contain on consumer’s credit report.  Errors on consumer’s credit reports can affect their ability to get a residential mortgage loan as well as other forms of credit.  Some common errors that contain on credit reports that affect a person’s ability to get a mortgage loan approval are dates that incorrectly reported.  For example, if someone had a bankruptcy discharge in March 2012 but the credit reporting agency is reporting the bankruptcy discharge date as March 2013, this will definitely affect the mortgage loan applicant from getting a mortgage loan approval by the automated underwriting system because AUS will be picking up the March 2013 reporting date and not the actual bankruptcy discharge date of March 2012.  There is a mandatory two year waiting period from the discharge date of a bankruptcy to qualify for a residential mortgage loan.  The Automated Underwriting System picks all of its information from the consumer’s credit report.

How To Correct Errors On Your Credit Report

If your credit report contains errors, you need to correct them as soon as possible.  You need to contact each of the three credit reporting agencies; Experian, Equifax, and Transunion: and provide proof that they have the wrong information being reported.  It normally takes between 30 and 60 days to get your information updated on your credit please that in mind.  If you are in a hurry to get your credit report updated sooner, your mortgage lender can do a rapid rescore which expedites correcting your credit errors on your credit report in a matter of days.  This normally costs about $100 per credit tradelines that you need corrected.

Gustan Cho

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