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California Bad Credit Mortgage Loan
Getting Your Credit When Shopping For A Mortgage Or Car Does Not Hurt Your Scores
One of the biggest misconceptions my customers have had in the 12 years that I have been in the mortgage business is that getting their credit report while shopping for a mortgage or a car hurts their credit scores. I also find that first time home buyers are especially reluctant to have their credit report and credit scores pulled because of this belief. Where did they get this misconception? I say this misconception comes from of two things: uneducated mortgage professionals, or deceptive sales techniques.
In the late 1990's, mortgage lenders started relying on credit scores to assist them in deciding whether or not to give someone a mortgage. Coincidently, at that same time the credit scoring system would 'ding' your credit score every time your credit was pulled, no matter who pulled it or for what reason. With the credit scoring system set up this way, it was counterproductive for a home buyer to shop around for their mortgage. Mortgage Loan Officers did tell their home buyers to not allow anyone to pull their credit because back then it really did hurt their credit scores.There was a lot of criticism of the credit scoring system because the system discouraged consumer from shopping around for the best deals. As a result of this criticism, the credit scoring system was changed to count any number of credit pulls during a particular period of time by different mortgage companies as one credit pull. The changes made to the credit scoring system were made somewhere after 2002.
There are some folks in the mortgage industry that continue to tell consumers about the old rules of the credit scoring system, thus limiting the consumer's ability to shop around for mortgage loan programs. It is hard for me to believe that after several years since these changes being made that loan officers are still telling folks about the old credit scoring system where it hurts the consumer's credit scores if more than one company pulls their credit. I can only imagine this situation in two ways. Either, the mortgage loan officer shouldn't be doing loans because they don't know the basics of the mortgage industry, or it is an inappropriate sales tactic employed by some mortgage companies and lenders to capture business. In either case, a mortgage loan officer telling someone looking for a mortgage to not allow anyone else to pull their credit, improves their chances of landing the borrower's business. This tactic scares the potential homebuyer from shopping around for the best deal, which is contrary to our free market society where we're encouraged to shop around for the best deal.
It is normal, appropriate, accepted, and encouraged, that when you are looking for a mortgage loan program that you do shop around. Part of shopping
[This article related to California Bad Credit Mortgage Loan continues below...]
The number of prospective borrowers who inquired about a mortgage rose 4 percent from last week, leaving the U.S. Mortgage Market Index from Mortech Inc. and Mortgage Daily for the seven days ended Feb. 3 at 270.
The index was 48 percent higher than the week ended Feb. 2, 2011.
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A foreclosure judgment in favor of U.S. Bank, N.A., as trustee against Julia Feltus was overturned by the District Court of Appeal of Florida, Second District, last Friday.
U.S. Bank had sought to re-establish a lost promissory note, and the court said that trial court erred because "U.S. Bank failed to show conclusively the absence of a genuine issue of material fact and that it was entitled to foreclosure as a matter of law."
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The complaint was filed Friday in the Supreme Court of the State of New York by New York Attorney General Eric T. Schneiderman.
The state alleges that the defendants have been using MERS "in a wide range of deceptive and fraudulent foreclosure filings in New York state and federal courts, harming homeowners and undermining the integrity of the judicial foreclosure process."
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The number of people working in the mortgage industry, including mortgage brokers and non-broker, fell less than 1 percent between November and December, according to government data released Friday.
Compared to December 2010, headcount in real estate finance was down 8 percent.
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The 30-year mortgage, 15-year mortgage and five-year, Treasury-indexed, hybrid adjustable-rate mortgage all fell to record lows.
This week's Treasury Market data suggests rates are likely to be about the same in next week's report.
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around is having your credit pulled by multiple brokers and lenders. Additionally, by scaring a potential homebuyer from shopping around, it sets the bar for excessive fees and interest rates to be charged to the borrower.
The bottom line here: if you are told by your mortgage broker, "don't let anyone pull your credit" question them. You'll know what to do depending on how they answer you.If you get your own credit report, you won't hurt your report or your credit scores. If you want to qualify for a mortgage, be sure that you get your credit pulled by a mortgage company. The credit reports that mortgage companies use are designed for mortgage companies that show specific information that the lender is looking for. Although you can get good information with your consumer credit report, the credit report pulled by the mortgage company will be more accurate for assessing your ability to get a home loan and for determines the interest rates you can get. If you want to pull your credit and find out your credit scores, you can pull them yourself through the services on GetPreQualified.com. You can go to our Free Credit Report section to order a free credit report.
One last piece of information: you have probably seen advertising for 'Free Credit Report' or some variation of this. This advertising is offering you a free credit report which you are entitled to get every 12 months according the US government. However, when you get this free report you'll find that you don't get a credit score. Credit scores are not free. This is the bread and butter of the credit report industry, so you are going to have to pay for your scores. If you are serious about buying a home, get the full blown credit report with your scores you'll be glad you did.
For mortgage information on mortgages and real estate, please visit: GetPreQualified.com.
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