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Types of Credit Reports
Understanding what types of credit reports are out there is an important aspect of the mortgage industry. Too many people don't know what types of credit reports mortgage companies use when evaluating a loan applicaion.
Here is the Type of Credit Reports:
- A Single Bureau Credit Report: This report provides information from a single credit bureau.
- A three Bureau Merged Credit Report: This report provides c redit information from all three bureaus and usually costs twenty to thirty dollars.
- A Standard Factual Credit Report: You will find a more detailed credit report and costs forty to sixty dollars.
A Standard Factual Credit Report is prepared by a service bureau in your area, and is sent to both you and your loan officer. The local credit bureau will request your credit history from all three credit reporting agencies, edit those reports for consistency, and combine them into a single easy to read document for delivery to all interested parties. The bureau will begin this credit process only upon receipt of a standard consent form signed and dated by you at the time you file your loan application with the loan officer you are working with. There are several categories of credit information in the completed credit report:
- Public records if any (tax liens, judgements, bankruptcy etc)
- Inquiries for your record by others
- Identifying information
- Employment information
- Credit information
Below categories are NOT included in your report:
- Criminal record, if any
- Political affiliations, if any
- Income
- Race
- Religion
- Health information
- Driving record
As you can see undertanding what type of credit reports are used is important. Mortgage lenders use these reports to qualify you and establish what interest rates they will lend to potential borrowers.
Kevin O'Connor
Mortgage Consultant
www.koloans.com
800.550.5538
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