How Credit Freezes Affect Your Mortgage Options

 

Going through the extensive home loan application process can be daunting for first-time homebuyers. Setting up all the important financial documentation and making sure you have a stable income and a good credit score is vital when applying for a Newnan mortgage. But what if you feel like your identification has been stolen and you want to protect your credit, would freezing your credit affect your mortgage application?

To help provide some insight, your local mortgage lender, Jeff Wilmoth with Homestar Financial, has explained what exactly a credit freeze is and how it affects your mortgage options.

 

What Is A Credit Freeze

Freezing your credit account is when your credit report becomes unavailable. This means that a Newnan mortgage lender nor any other company can have access to your credit report. Freezing your account can be beneficial if you feel your identity has been breached but it can have a negative impact on your mortgage application.

  

How A Credit Freeze Affects Your Mortgage Options

Your credit score plays a major role in helping lenders decide if you are a high-risk borrower or not. If you have a low credit score, lenders know they should charge you a higher interest rate so they are more protected in case you were to default on your payments.

Your credit score can also dictate which mortgage options you can qualify for. This is why freezing your credit can affect your application status because if lenders have no report to review then they have no idea if you are financially capable enough to pay back your Newnan home loan.

Therefore, if your account is currently frozen, you will have to unfreeze it so a mortgage professional can review your finances and decide which loan option is the right fit for your financial situation.

 

Contact Us

If you would like to receive more information on how a credit freeze can affect your mortgage application or if you are interested in applying for a home loan, please contact Jeff Wilmoth with Homestar Financial at 404-597-5662

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 Copyright © 2018. NMLS#206798, Georgia License#26534, 45 Newnan Station Drive, Suite B, Newnan, GA 30265, Homestar Financial Corporation NMLS #70864 Georgia Residential Mortgage Licensee #17368. This is not an offer to enter into an agreement or a commitment to lend. Not all customers will qualify. All terms, information, conditions, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all loan products are available in all states. The advertised rates/APRs and terms are examples of loan products available as of the date indicated and are subject to change without notice. The loan terms (APR and Payment examples, if applicable) listed do not include amounts for taxes or insurance premiums. The monthly payment amount will be greater if taxes and insurance premiums are included. Certain other restrictions may apply. Homestar Financial Corporation is not affiliated with any government entity.