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Why We Have to Pull Credit For Every Pre-Approval

Why We Have to Pull Credit For Every Pre-ApprovalWe frequently have borrowers request pre-approvals without pulling their credit. This is impossible for several reasons. The below is from the FAQ section of our website.

Along with your income, employment, and assets, your credit profile is crucial during the evaluation process for any lender’s pre-approval or pre-qualification. JVM’s full pre-approval process requires that we run our own credit report for several reasons. First and foremost, we use Fannie Mae’s and Freddie Mac’s specialized software as part of our pre-approval process. The specialized software requires that we have our own internal credit report in a specific format that integrates automatically with the software. We need to integrate the entire report too; we cannot just use a score or information that is conveyed to us. In addition, we need to make sure we have a valid and up to date report to ensure we have an accurate pre-approval. Credit reports and information provided by third parties cannot be verified as 100% accurate and therefore should not be relied on when the stakes are so high with respect to mortgage pre-approvals.

We of course understand the concern many borrowers have in regard to “inquiries” on their credit reports. Because of this we like to remind borrowers that the major credit bureaus consider all credit inquiries from mortgage lenders within a thirty day period to be a single inquiry from a credit score perspective. This allows borrowers to “shop” among different lenders, if necessary, and avoid an adverse impact on their credit.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167