I cancelled my contract, but am still looking for a home. Does my credit report need to be repulled?
Short Answer:
It depends upon when your hard credit report was pulled. Most lenders require a mortgage to close within 120 days of the credit report being pulled for that report to be used.
Longer Answer:
If you've recently canceled a home purchase contract but are still on the hunt for your dream home, you might be wondering about the status of your credit report. Specifically, do you need to have your credit report pulled? Let's explore this question to help you understand the process and what steps you might need to take.
When Was Your Hard Credit Report Run?
When you first apply for a mortgage, lenders perform a hard inquiry on your credit report. This inquiry starts the clock of when a credit report can and can not be used.
Timeframe and Validity: Hard credit reports used for mortgage applications are generally valid for 90 to 120 days. This means that the mortgage must close within this period for the report to be used.
Changes in Financial Situation: If there have been significant changes in your financial situation since the initial credit pull—such as taking on new debt or missed payments—a lender might need to pull your credit to reassess your eligibility. For example, if the lender has learned you missed a payment on a debt, they might require a new credit report with new scores to reflect that missed payment.
Lender Communication: It's crucial to maintain open communication with your lender. Before putting a new contract on a house, the lender should be consulted to verify that the new closing date is before the credit report expiration. If your new closing date is even one day after the expiration of the credit report, a new hard inquiry credit report will need to be pulled, resulting in possible new scores.
Conclusion:
While canceling a contract doesn't inherently require a new credit report pull, factors like the time elapsed and changes in your financial status can influence this need. Always consult with your lender to understand their requirements and ensure you're prepared as you continue your home search. By staying informed and proactive, you can navigate the home-buying process with confidence and clarity.
If you have questions about credit report expirations, please reach out to me at teamjd@mainstreethl.com
These blogs are for informational purposes only. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Should you have any questions about the information provided, please contact me.
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