THD Credit Consulting

A Residential Mortgage Credit Report vs. a Consumer Credit Report.

Erik Kaplan

Erik Kaplan

Erik is the CEO and Founder of THD Credit Consulting

When it comes to your credit, applying for a home loan is different than applying for just about any other type of consumer loan.   

Since a mortgage loan is for a substantially larger amount and for a longer time frame there is more risk for the lender.  Therefore, to qualify for a mortgage more information is required in the underwriting process than for a credit card or auto loan.

For example, when applying for a credit card or auto loan, your lender will most likely request a copy of your credit report from one of the nation’s three credit reporting agencies, and either approve or decline your loan request.  

When you apply for a mortgage loan, it is a whole different ball game.   

What is a Residential Mortgage Credit Report?

Also referred to as a RMCR and tri-merge, this report is a composite of merged information from the three major reporting agencies – Experian, Equifax and TransUnion.  It basically puts a ton of information in an easy to read format for a lender.  All scores in one place, all negative accounts in another, all positive accounts in yet another, etc.

Can pulling a RMCR lower your credit score?

 Since this type of report is a hard pull, you may see a small dip in your credit score.  

If you are contemplating buying a home the first step is to figure out where you are at RIGHT NOW!

Here are a few things you need to do:

  • Get a copy of your credit report and make yourself comfortable with the information on your reports.
  • Check for errors that could be dragging your score down. 
  • Do NOT make any major changes, like closing an account. It could send your score down.   

If you need help improving your credit in order to buy a home, give me a call or email me today.  I help clients with this type of repair work everyday, and know how to make good things happen!

-Erik Kaplan

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