When Should a Borrower Have a Credit Report Pulled?

Orion’s brokers, when asked, will often say that borrowers tend to be fearful of having credit reports run because they are concerned the inquiry will hurt their credit score. As a result, many obtain a report on-line and want to use it for their mortgage pre-qualification and approval. Brokers know, however, that every lender must obtain its own report.

Experienced brokers tell clients that when to pull their report is dependent upon where they are in the process. Is the client just in the discussion phase and want to see where to begin, how to begin, what needs to be done to begin? At this early stage, the conversation with the broker will probably be limited to generalities to begin the prepping of a plan.

Good brokers like to limit the number of reports pulled. A tri-merge report is good to know exactly what the borrower’s credit shows for qualifying and approval. (A report known as "tri-merge" means it includes the data from the three main credit reporting bureaus, Equifax, TransUnion and Experian.) An Orion AE will have plenty of experience in gauging this timing piece of the process. Once an initial report is pulled, Orion will tend to stick with that for as long as possible. In the current market it can, and does, take some buyers several months to find the home they want, and can, buy and have their offer accepted.

Also, timing of a credit report pull is dependent upon what the financial situation currently looks like. There are certain situations that need to be addressed early in the process. For instance, if the client has had medical issues that took some time to resolve or if the client is linked to another persons’ debt, or self-employed.

Ultimately, the optimal time to pull a credit report is typically just before writing up offers for a home purchase or if the client thinks there may be some issue from the past that could have an impact or be an issue that needs to be dealt with out of the gate. Your AE will fill you in!

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