Planning to Apply for a Mortgage? Don’t Let a Credit Freeze Slow You Down
Freezing your credit can be a smart security step. A credit freeze helps prevent new creditors from accessing your credit file without your authorization, which can be an important tool for protecting your personal information.
But if you’re getting ready to apply for a mortgage, there’s one thing you’ll want to plan for: your credit freeze may need to be temporarily lifted before your credit reports can be accessed.
A Credit Freeze Can Create an Unexpected Delay
When you apply for a mortgage, your lender or mortgage professional needs to obtain your credit reports as part of the application and underwriting process.
If one or more of your credit files are frozen, the required credit report may not be accessible. That can create a frustrating delay—sometimes right at the beginning of the application process when you’re eager to get your preapproval underway.
The good news? It’s usually something you can plan for.
Before submitting your mortgage application, talk with the mortgage professional handling your loan. They can help you understand exactly what needs to happen so your credit can be accessed without unnecessary delays.
What Should You Ask?
Before lifting a credit freeze, ask your mortgage professional these four questions:
1. Which credit files need access?
There are multiple credit reporting agencies, and your lender may need to access more than one. Find out which credit files need to be available for your mortgage application.
2. When should the lift begin?
Timing matters. You don’t necessarily want to lift your freeze too early—or wait until the last minute. Ask when the freeze should be lifted so the credit reports can be accessed when needed.
3. How long will access be needed?
Ask your mortgage professional how long the credit files should remain accessible. The timing can depend on where you are in the mortgage process and whether additional credit information may be needed.
4. When can you safely restore the freeze?
Once the necessary credit reports have been obtained and your mortgage professional confirms that access is no longer needed, you can ask when it’s appropriate to restore your credit freeze.
A Few Minutes of Planning Can Save a Lot of Frustration
Buying a home already comes with plenty of moving pieces. Discovering that your credit reports can’t be accessed shouldn’t have to be one of them.
If your credit is currently frozen, don’t automatically remove the freeze long before you’re ready to apply. Instead, coordinate with your mortgage professional so you know what needs to be lifted, when it needs to happen, and when you can restore your protection.
The goal isn’t to choose between credit security and a smooth mortgage process. With a little communication and planning, you can do both.
Thinking About Buying a Home?
If you’re planning to apply for a mortgage soon, talk with your mortgage professional before making changes to your credit profile. A quick conversation ahead of time can help prevent avoidable delays and keep your application moving forward.