What is the difference in consumer credit and a mortgage credit report?


There is a huge difference between a CONSUMER credit report and a MORTGAGE credit report. Actually there are three different types of credit reports: consumer, mortgage, and auto. In addition there are three different credit bureaus. So you actually have 6 different credit reports — 3 types from each of the 3 credit bureaus. Since not all creditors report to all three credit bureaus your scores may be different on all three types, even from the same credit bureau. If you are thinking about buying a home, the RMCR is the report that is used by most lenders to determine credit worthiness.

Residential mortgage credit report (RMCR) is a supplemental report that provides details on items that have been flagged in a merge report as a result of combining reports from Equifax, Trans Union and Experian. The RMCR will contain combined information from at least two of the three national credit bureaus. It will check whether your residency, employment, credit scores, etc. are compliant with or exceeding Fannie Mae, Freddie Mac, FHA, and VA guidelines.

The residential mortgage credit report (RMCR) is used by mortgage lenders when different trade line verifications are needed, and includes features such as verification and update of collection accounts, re-verification of disputed information, verification of liabilities, and other relevant items.

Your credit report is the proof of your trustworthiness as a borrower. It shows how you handle old and recent debt, how you manage your taxes, shows your credit lines, car loans, etc. Mortgage brokers will need your credit report to determine the probability that you will make timely payments on your mortgage loan.

The RMCR will also provide your lender with your credit score. Elements of Credit ScoreYour  credit score is a three-digit number generated by a mathematical algorithm using information in your credit report. It’s designed to predict risk, specifically, the likelihood that you will become seriously delinquent on your credit obligations in the 24 months after scoring.

There are a multitude of credit-scoring models in existence, but there’s one that dominates the market: the FICO credit score. According to myFICO.com, the consumer website for the FICO score developer, “90 percent of all financial institutions in the U.S. use FICO scores in their decision-making process.” Your credit score can mean the difference between being denied or approved for credit, and a low or high interest rate.

If you have questions about applying for a mortgage or would like more information on how to raise your credit score, please send me a request by email. I will send you our “Improving Your Credit Score Tips” brochure. These simple ideas have helped hundreds of borrowers realize their dreams and we would like to help you realize yours! 

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Source;   Kiplinger, ASK, mortgageqna,Bankrate, MYFICO.com

Michelle Castle provides mortgage loans to all of North Texas and Southern Oklahoma. Call Michelle Castle at (903) 892-1998 if you are looking for a home loan in North Texas and Southern Oklahoma.  Click here to visit Michelle’s website and apply for a loan.

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About Michelle Castle

Since 1996 I have had the pleasure of assisting thousands of families find the perfect loan. I understand life is hectic and moving a family can be a stressful experience. I believe it is important to keep my clients informed every step of the way. I am easily accessible so my customers can focus on moving their family into their new home. If you have friends or family that aren't sure if they qualify to buy a new home, send them my way. I would be happy to get them on the path of homeownership. I also enjoy helping families refinance their homes to either get their equity out of their home or do just save money. Allow me to give you the peace of mind families have trusted for years.

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