Can a credit report security freeze slow down your mortgage qualification letter?

Can a credit freeze affect how you qualify for a mortgage?

This has become a more common question due to the recent Equifax data security breach, and in light of today’s housing market where multiple offers can be placed on a home in one day, timing can be critical!

In today’s video tip, I will explain what a credit report security freeze is, how you can prepare for the mortgage qualifying process, and discuss how to avoid potential qualifying delays.

Also, what if your credit score suddenly drops or just falls out of range for loan approval?  Over the years, we have been able to help many of these situations through Rapid Rescoring, where it can be possible to increase a buyer’s credit score in as little as 3 days! You can download an educational flyer on that right here or watch our Rapid Rescoring video to get more details.

Can a credit report security freeze slow down your mortgage qualification letter?

There are times when a customer is starting the qualification process, and they alert us about a credit freeze on their report.  So what is a credit freeze? Generally speaking, this can be looked at as a hold placed on your credit report which restricts access, thus making it more difficult for identity thieves to steal your personal information.

A credit freeze, also known as a security freeze, does not affect your credit score, nor does it keep you from obtaining your free annual credit report from the three credit reporting agencies at: annualcreditreport.com

It also doesn’t prevent a thief from making charges to your existing accounts. Remember, it is always good practice to monitor your bank and credit account statements closely.

Also, existing creditors still have access to your credit report along with government agencies who may have access due to an order through the courts, search warrant, or subpoena. 

So, how do you request a credit freeze?  You will need to place a request with each of the credit reporting agencies, Transunion, Experian, and Equifax. 

Generally, there will be a fee with each agency and once the request is placed you will receive a confirmation of the freeze, in the form of a PIN# or unique identifier.  It is important to keep this secured, as it will be needed when you choose to lift the freeze.  

Now, to remove the freeze, you will have to go back to the credit bureaus and request a temporary removal. If you are attempting to qualify for a mortgage and have a security freeze on your credit, be prepared in advance to have it lifted, because unnecessary delays may slow down how quickly the qualification process can start.

The Federal Trade Commission (“FTC”) has more information on credit freezes here.

Also, learn more about the Equifax Data breach from the FTC here.

In closing, if you are experiencing financing difficulties and want to keep your loan approval on track, please take advantage of our free Second Opinion Service “SOS” which is designed to help Realtors and Buyers get access to an expert second opinion and is great for both new pre-qualifications and loans that are already in progress.

Just call or email to discuss your scenario and let us show you why were are the 2017 #1 Ranked USDA Approved Lender in Florida!

(800) 806-9836 X 280

SeanS@MPLX.org