Can a Realtor Pull Your Credit?
- Lenders are the most likely to pull your credit, followed by insurance companies, according to MSN Money. Realtors want to get your credit score as soon as possible because it gives them vital information on how to proceed. The lower your credit score, the more a lender will expect you to put down on the home. The same check holds true for rental or leasing, because your credit score is an indication of how well you pay your bills.
- The most commonly used credit score is the FICO, developed by the Fair Isaac Corporation. The three most important credit factors used to determine your FICO are your payment history at 35 percent, your current debt amount for 30 percent and 15 percent for the length of your credit history. The score can range between 350 and 800 points, but lenders and Realtors prefer scores of 600 or higher. Lower credit scores may result in paying higher interest rates, or being required to pay 10 percent or more down on a contract.
- Once the mortgage process begins, your credit score and credit history will be checked multiple times. Just prior to closing, the lender will probably make one last check to find out if anything about your financial standing has changed, and in what ways. Lenders and Realtors are putting a lot at stake when they sell a home or other property, and keeping an eye on your credit score is one of the most accurate tools they have to verify the risk of loaning to you.
- Checking your credit score is not the same as pulling your credit history. Companies may check your credit score many times, but will only pull your credit history during an actual sale or contract negotiation. Your credit score will not be affected by multiple checks, and your credit score will not change just because you are being reviewed for a major purchase. It is only when your credit is slow or you suddenly start applying to multiple lines of credit that your credit score may suffer.