The need for a “DIP policy decision” with a credit check is motivated by the objectives of each mortgage lender. Large quantities of mortgage lenders like Halifax and Santander would simply use the automated process to whip candidates they don`t want to lend to, comfortable knowing they can do their goals with lower prices (interest rates) if they need to. Specialized mortgage lenders like Precise Mortgages use credit check to determine the mortgage product in accordance with the risk to them. B for example, registering mortgage arrears could be a more expensive product than a client who has always paid on time. I emphasize that even if a mortgage lender does a “soft” search in the policy decision, it is replaced by a “hard” search as soon as you apply for a full mortgage. The search for credit is deeper than soft searches. The main difference between difficult and gentle searches is that difficult searches can affect your credit score. Anyone who looks at your file in the future will be able to see that you have had a difficult search on your partition. This won`t really affect you if your credit score is high. If your score is lower and you have more than one difficult search in your file, it might seem like you`re trying to ask for a lot of credit at the same time. It depends on the type of research the lender decides to take.
This involves both a flexible and difficult credit search: you need to provide some details about your income, your savings and your deposit amount. Then, your lender or broker will automatically calculate an estimate of the mortgage you might receive. They may be asking for your credit commitments, but they are not looking at your personal credit history in the PMI phase. Today, more and more people are paying much more attention to their credit ratings. Consumer awareness of credit quality assessment is now stronger than ever. I would say that at least half of the people who are contacting us for the first time have already looked at their credit report online. There are a lot of credit agencies out there. Most people have heard of Experian or Equifax, but the free trial version we recommend to potential new customers is available with Check My File.
This is available on this report “sweeps” several of these reference agencies and summarizes the information in a color encoded report easily understandable. Customers often ask if we will do a credit search on them because they know that too much research can have a negative impact on their creditworthiness. Lenders always conduct credit checks, but we always ask that a customer request permission before doing so. There are 2 different types of credit search that banks can perform on a customer: hard or soft. Neither an MIP nor an PIA is a contract. No one guarantees you a mortgage. You still have to go through the entire mortgage application process – a much more detailed review of your finances – and you may be rejected.