First, determine if you have recently applied for a mortgage online or completed an application for an apartment. Mortgage companies and landlords will often access your credit through a company who provides credit reports for mortgage or tenant purposes. Multiple inquiries from the same company can happen when you are applying for credit. Here are a few examples:
- At loan origination – In order to determine the best loan product, rates, etc. After a Rapid Rescore® – in order to show the new credit score after trade lines have been revised or corrected.
- Prior to closing the loan – Debt not reflected on the credit report that you forgot to tell us about on your loan application is a leading cause of mortgage fraud. This is done to ensure no new liabilities have been incurred since loan origination which could alter your ability to repay this loan. If any additional liabilities or an increase in existing credit is revealed during the loan application process your loan may be subject to requalification.
- Lender Preference – On occasion particular lenders require a credit report from a specific credit vendor in order to run your credit through their automated underwriting system. Although rare, it does happen and could be necessary to pull another credit report.
The possibility of additional credit reports is not limited to the above scenarios. An effort is made to access your credit as few times as possible during the loan process.