A residential mortgage credit report (RMCR)is used by housing lenders to determine whether you will qualify for a mortgage, and what those mortgage terms, such as your interest rate, will be. The RMCR is a aggregated report that covers all of the information found on your consumer credit reports, and if you are applying for a mortgage with your spouse, his or her credit data as well. In order to access a residential mortgage credit report on you, a lender will have to purchase the report from a mortgage reporting company. The mortgage reporting company acts as a credit broker, and uses all of your credit information to compile the report.
The reason a RMCR is so popular with mortgage companies and banks is that there are three different credit reporting agencies that follow your credit history, and all of them have different things to say and provide about your credit. Instead of requesting a credit report from each of those credit agencies, a mortgage company can simply contract with the mortgage reporting company and get a more concise and useful snapshot of your borrowing and repayment history. The reporting company provides your credit score and summarizes all of the credit data so that lenders do not have to go through pages and pages of credit information.
The things that will show up on your residential mortgage credit report are the same things that are on your consumer credit report. If you have a history of late payments, bankruptcies, foreclosures or other credit problems, they will be included in the RMCR. Your credit score and your spouse’s credit score will figure prominently on your report, and then there will be sections that detail how much debt you currently have and what kind of success you have had in paying it back. Other information will be included as well, such as personal identifying information about you.
A residential mortgage credit report will be requested any time you apply for a mortgage. If you want to refinance an existing mortgage, a RMCR might also be requested by your lender. It is important to maintain a good credit history and keep your credit score high, so you have a good shot at getting the best terms on your home loan. While a RMCR might provide a more concise picture of your credit history, it will not be able to blot out any negatives that your consumer credit reports show.