TransUnion's mortgage solutions help identify customers who are expected to be looking for a mortgage. Current information on home equity loans. Once you've determined that you're ready to buy a home, you need to understand how lenders view you. An auto lender provides a very different type of loan than a mortgage lender or credit card provider, so you may want to emphasize different details in your credit report.
Having a lower credit score than this could dramatically affect the quality of your mortgage terms (for example, only qualifying you for a high interest rate) or may prevent you from qualifying for a loan. Lenders may also have unique evaluations, which is one of the reasons why finding a mortgage can be important. Lenders are looking for borrowers with lower credit utilization because running out of the maximum credit card limit can be a sign of a risk of default. Your credit scores can be an important factor in getting a mortgage approved and the rates offered to you.
If you apply for a mortgage from several lenders in a short period of time, usually a few weeks, most models will treat all of those requests as a single inquiry. TransUnion, Equifax and Experian will provide a credit score to the lender when determining their chances of loan approval. The APR for any installment loan, such as a mortgage, reflects the cost of interest, expenses and fees over the life of the loan. Regardless of the credit scoring model your lender ultimately uses, you can take some basic steps to improve your credit score.
Each credit rating model interprets your credit profile information differently, in order to provide lenders with the information they need to approve your home loan application. Before you apply for a major loan, such as a mortgage, it's a good idea to review your credit report. TransUnion can help you avoid unwanted setbacks by providing you with mortgage information about credit scores, fees and more as you close the deal. If you can eliminate a late or late payment from your credit report, this can give your credit score a big boost, giving you a better chance of getting a good rate for a mortgage.
However, mortgage lenders also go beyond their credit scores by evaluating a potential borrower's application. When you apply for any conventional loan or credit card, the lender will ask one or more of the credit bureaus for a copy of your credit report.