Princeton Town Topics – Let’s Talk Real Estate – October 4, 2017
EQUIFAX BREACH: WILL FREEZING YOUR CREDIT AFFECT YOUR MORTGAGE APPLICATION?
The Equifax credit breach left more than 140 million consumers wondering if they’re the next target for identity thieves, but fortunately, you can exercise some damage control by freezing your credit report. The only problem is, if you’re applying for a mortgage, you need to time the freeze so it won’t cause problems.
Lenders use your credit information to decide if they’ll offer you a mortgage and what rate you’ll receive. If your reports are frozen, the lender won’t be able to see your information. On the other hand, if you delay in freezing your reports and you are targeted by identity thieves who wind up opening new accounts in your name, your credit can take a major hit that may take months to clear up.
What to do? If you’re planning on applying for a mortgage, talk to your lender about your concerns ahead of time. They should be able to provide you with a rough timeline of when you can safely freeze your reports without interfering with their due diligence. Once the process is complete, you can contact the three bureaus and freeze your reports. To find out more about freezing your reports in NJ, visit this site.