This explains why your credit record can vary from one reporting agency to another. Your credit record is extremely significant for getting a mortgage. Keep in mind that your credit record covers a long period of time. Your credit record is the basis for your credit score . Your credit score is used to help determine not only if you will be approved for a loan, but also what interest rate you get for your mortgage.
Credit scores are an extremely important part of the underwriting process.
They provide an objective way of interpreting credit reports, because the same standards apply to everyone and every factor is accessed equally for every consumer, every time. Today, many lenders use what is called automated underwriting, which is a computer-based process that evaluates your loan application objectively and within minutes. Again, it is objective because the same standards apply to every loan application. Automated underwriting results in an electronic recommendation, which lenders use along with other information gathered to create a full picture of your loan application to make a final decision on your loan. Credit scores play a huge role in the underwriting process.