What is a Tri-Merge Mortgage Credit Report?

One on the many critical factors in understanding the risk of a mortgage loan is a consumer’s credit score. This ensures the borrower is credit worthy and will have the ability to pay the monthly payment on time. One of the first items a lender will ask is information to be able to pull your credit report.

There are 4 pieces of information a lender needs to pull a credit report. Your name, birthdate, current address, and social security number. The lender will use this information to pull a credit report through a credit report company and in the case of a mortgage 3 scores will be provided. Each of these are called FICO scores as Fair Isaac Company’s scoring model is utilized. These 3 scores come from the largest credit bureaus – TransUnion, Equifax, and Experian. Because there are 3 scores it is considered a tri-merge report. The lender will use the middle of these three scores as the ‘qualifying’ score. Scores can range from 300 (low) to 850 (high). A score greater than 700 is considered very good to excellent.

The report will return not only a score but your complete credit history showing all credit whether it be open or close, the balance and related payment as well as noting if you have made your payments on time.

The higher your score the better overall rates and fees will offered to you. When you apply for a mortgage and your credit report is pulled you are entitled to a copy of the report. Don’t worry if you are not able to read it as your mortgage expert at Hall Financial is there to assist you.