Over the years, many American’s have taken precautions to ensure that their personal information does not end up in the wrong hands. One way to protect your information is through a credit freeze. However, trying to purchase a home with frozen credit can be complicated to navigate.
What is a Credit Freeze?
A credit freeze limits access to your credit report so no one, including you, can open new accounts until the freeze is lifted. To be fully protected, you must place a freeze with each of the three credit reporting agencies. You’ll usually get a PIN or password to use each time you place or lift the freeze. A credit freeze is free and lasts until you lift it.
Applying for a Mortgage with Frozen Credit
Utilizing a credit freeze is great to ensure your information stays safe, however, if you are looking to purchase a home in the near future, this bullet-proofing can make it difficult. Applying for a mortgage with a lender requires your credit to be checked at least twice: during the underwriting process and as a quality control measure right before closing. But, with your credit frozen, these actions cannot be completed until the freeze is lifted. In order for the mortgage process to go smoothly, unfreezing frozen credit is a must. But how do you go about it?
Unfreezing Your Credit for Loan Applications
In order to unfreeze your credit, you will need to contact each credit bureau individually and use the PIN or password that you received when your credit was originally frozen. The credit bureaus lift freezes typically no later than three business days once the request is received and there is a small fee associated with unfreezing your credit (which will vary by your location). Planning ahead of time is key, and you may want to consider keeping your credit unfrozen until after the loan process is complete.
If you’re worried you may forget to refreeze your credit after you purchase your home, you can request that the freeze be replaced when your loan closes, ensuring that your information is protected.
Who to Contact
To start the process of unfreezing your credit, here is the contact information for each credit bureau.
Equifax
Equifax.com.com/personal/credit-report-services
800-685-1111
Experian
888-397-3742
Transunion
888-909-8872
Blackhawk Bank is Here to Help
The mortgage process can be confusing, and protecting your information while purchasing your dream home is crucial. Here at Blackhawk Bank, we want to help you navigate the entire mortgage process with confidence and ease. Are you ready to learn more about Blackhawk Bank? Contact us today!
Author:
SVP Mortgage Banking