You know how we’re often warned to check our credit scores? They’re right! We’re in the process of closing on a property in 3 weeks and one of the credit reporting agencies for Richard shows a defaulted mortgage. The other 2 credit reporting agencies don’t show anything. We don’t know what the property is or who the mortgage company is.
Richard called the credit reporting company (Trans Union). They said it would take 30 days to pull the records. He called the mortgage company that reported it. They said it would take 30 days to pull the records.
We’re closing in 3 weeks.
In this case, it doesn’t matter because the new mortgage lender is using the middle credit report of the three major credit score sources for purposes of the loan. So, the one with the false report is the lowest and the other two are good, so the lowest of those two will be used.
But, wow, what if it had been on TWO of the three credit reports? It would have meant a much higher interest rate or maybe even no loan.
Moral of the story is to get your free annual credit reports. Get all three reports and if there is a question, get it cleaned up right away.
Here is the link to order yours: http://www.annualcreditreport.com.