We just put a bid on a house today and our agent said the seller was impressed with the offer but asked for a credit report. We didnt think this was an issue, but when we spoke to our mortgage broker he said it is illegal for them to ask for that and that they can just consult him if needed. Our mortgage broker is a family friend we trust. So my question is... Has any been asked to provide a credit report with a bid? is this standard or illegal? Thanks for the help! (sorry so long!)
Misha
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Re: Important Question about credit reports?
Have you been pre-approved for a mortgage? I definitely don't think it is standard to ask, but I don't think it's illegal (i'm not an attorney though). Usually, if you have been pre-approved that should be enough for the seller since the broker would have already seen your credit report. I would ask an attorney though.
KarenG
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Re: Important Question about credit reports?
Unless they are giving you a seller's mortgage, they do not need to see your credit report. That information is none of their business and should not be a condition of the bid offer.
The only concern they should have is if you have been preapproved for a mortgage. The preapproval means a lender has reviewed your credit and deems you worthy of a mortgage (subject to formal underwriting & other conditions of course).
You should submit your preapproval with your offer. Good luck!
LIPrincess00
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Re: Important Question about credit reports?
I was asked for a credit report with my contract and proof of our salary and my lawyer said no and took it out. My thought is if you have a pre-approval that should be enough. That is very personal and I just wouldnt provide it.
dgtlsunshine
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Re: Important Question about credit reports?
I have never heard of that. I think being preapproved is what some sellers usually request. I would not feel comfortable doing something like that. I hope you all work that out and move on to contract :)
Karen H
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Re: Important Question about credit reports?
NO WAY would I give that to a seller. It has your social security #, past and present addresses, and all your credit card account numbers! You don't know these people nor can you trust what they might do with that info afterwards, even if it was just careless disposal.
Charly
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Re: Important Question about credit reports?
We needed to give the sellers a pre-approval with our bid...the pre-approval usually requires a credit check - therefore that should be sufficient for the sellers.
Jenn524
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Re: Important Question about credit reports?
You shouldn't be asked for a credit report with a bid. I can understand a pre-qual or pre-approval letter but your credit history is for your eyes only.
Curley999
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Re: Important Question about credit reports?
Thank you for your responses. Our agent explained that it is legal for the seller to reqeust a credit report in addition to the approval letter after an offer is presented to help in thier decision. We did provide a bank prequalifaction letter with the bid however. We are so confused. Our mortgage broker disagrees and does not beleive we should hand over this information. But we also dont want to loose the house over this, since we do have good credit!....we are now going to ask our laywer about it too....hopefully we can figure this out on Monday..thanks!
Fran M
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Re: Important Question about credit reports?
Maybe you can provide them with a copy of your FICO score with your personal ID info blocked out. There is No Way I would give them a copy of my credit report.
Kriss2c
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Re: Important Question about credit reports?
If the seller is that worried about it, just have your attorney insert a provision that the sale is null and void if you cannot get a mortgage within a certain amount of time and your downpayment returned, this way you are both protected.
