Posted on Friday, July 19th, 2013 at 8:53 pm.
When filing a mortgage application, an applicant’s credit will likely be checked and re-checked, even monitored daily, to ensure that new debts will not appear prior to finalizing the loan.
Pre-closing credit monitoring is a byproduct of the sub-prime economic bubble pop that occurred in late 2007. Since then, lenders have become more vigilant as they are afraid of buying back loans from investors if borrowers had more debt than what they had disclosed at the time of their application.
With this concern, most banks and mortgage companies now employ some form of program to keep tabs on credit files between the date of your loan application and the date of your settlement. One such program is Equifax, which alerts your mortgage company of your plans to pursue additional credit, such as online inquiries in furniture shops and electronic stores.
If you have questions regarding how to manage your finances and other accounting matters, such as bookkeeping or retirement assistance, get in touch with an accountant in Austin who can help you by filling out the contact form on this page.