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When a lender is looking at someone’s loan application by hand (which is called manual underwriting), they need to closely examine the applicant’s credit report. Specifically, they’re interested in how the applicant uses their credit cards and similar revolving credit accounts. They do this by comparing the amount of credit…
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When someone applies for a mortgage, the lender looks at many parts of their financial history. One important part is the borrower’s credit report, especially the section that shows if and when they have asked for new credit. These are known as inquiries. The lender checks the credit report for…
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This section explains the rules for checking a home buyer’s previous mortgage payment history. This includes how to document past mortgage payments and what to do if there’s a history of late payments. When someone applies for a mortgage, the lender must look at the borrower’s credit report to see…
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This section talks about how a lender should look at a borrower’s history of making payments. When a lender is deciding if they should give a loan to a borrower, they need to carefully look at the borrower’s credit report. The credit report tells the lender about every loan or…
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## Introduction This section is about understanding the importance of the number and age of the accounts on a borrower’s credit report. ## Number and Age of Accounts ### Understanding Credit History Through Account Age and Number When a lender looks at a borrower’s credit report, one key thing they…
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Lenders must check the borrower’s credit report and all related credit information to ensure it meets the standards set by Fannie Mae. This includes confirming that the information assessed by the automated underwriting system (if used) is correct. If a borrower finds something wrong in their credit report—like accounts they…
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An in-file credit report is a basic type of credit report. It pulls information directly from one or more of the big credit bureaus. This report shows the borrower’s credit and any public records as they are, without any updates for the credit application. For the report to be acceptable…
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When you apply for a mortgage to buy a home, the lender needs to check your credit report. This report must come from major national credit bureaus. There are specific types of credit reports that are acceptable, which are detailed in another part of the guide. If you don’t have…
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When you’re getting a mortgage, lenders look at your credit score to decide if you’re eligible for a loan and at what interest rate. The way these scores are calculated for a mortgage can be a bit specific. Here’s a breakdown of the key concepts Fannie Mae uses: Representative Credit…
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When you want to buy a home and need a loan, the company lending you the money will check your credit score. A credit score is a number that tells lenders how likely you are to pay back a loan on time. The scores they use are called FICO scores…