Avoiding Mortgage Triggers, Part 1

Last February, I discussed mortgage triggers, which are generated when a mortgage lender pulls a borrower's credit history from a credit agency's database.
(See earlier entries here and here)

In the next several listings, I'll discuss how you can stop this practice and facilitate a smooth closing.

First, let's take a look at what happens when a mortgage originator pulls your credit report from consumer credit bureaus (such as Transunion, Equifax, Innovis, and Experian) to obtain your credit score and process your loan application:

• The credit bureaus may place your personal information on a prescreened list (also called a "trigger" list)
  
• Within hours, the credit bureaus may sell the list to hundreds (or thousands) of companies. Your mortgage originator does not authorize this sale of your personal information... and we cannot prevent or stop it.
  
• Shortly afterwards, you may begin to receive phone solicitations for other mortgage products from numbers and companies you don't recognize.
  
• Within days, you may also begin to receive mail solicitations for mortgage products from other companies.
  

Visit again tomorrow to learn what to look out for. Later, I'll tell you what you can do to protect yourself and your identity.

Source: National Association of Mortgage Brokers