Does Mortgage Deferral Affect My Credit Score?
Conventional loans span 30 years. Even non-conventional and innovative mortgages have a lifespan of 30 years. During this time, homeowners change jobs, grow their families, and experience loss. It’s not surprising that homeowners might experience some degree of financial hardship. If it’s severe, it’s possible to request a mortgage deferral.
Although a deferral does not hurt the homeowner’s credit report, it has a different effect. If a creditor looks up your credit report, they will see that the mortgage is in forbearance. While it’s not a negative mark, it does send up a red flag. It signals that you have debt that you’re not currently paying off. This makes it difficult to obtain new debt including credit cards.
Sometimes obtaining a consolidation loan makes more sense than entering forbearance. These are options that loan specialists from Mortgage House explore when homeowners contact us. After they submit the correct application, we process the paperwork.
Our job is to ensure that a homeowner keeps their property. Moreover, we give clients access to additional products such as a business loan. Since we remain a leader in innovation within the lending industry, we search for solutions that benefit our customers in several ways.
Mortgage Deferral Conclusion
A mortgage deferral does not harm the homeowner’s credit report. But the deferral still shows up. During the deferral period, it’s best to avoid applying for new debt such as credit cards. If you’re searching for home loan solutions, Mortgage House is available. Contact our loan specialists to start the process.