What Does a Credit Freeze Mean for Your Chance of Getting a San Diego Mortgage?

As we start to rely more and more on technology to make our purchases, it has continued to open the door further and further for hackers and thieves to steal our credit cards, social security numbers, and bank account information. The news seems to be constantly reporting a security breach at another company on a regular basis. This can be nerve-wracking to anyone. And, if you are trying to buy a San Diego house it can make things even more complicated.

If you are worried that your information has been compromised you may have through about freezing your credit. But, when you want to buy a San Diego house and need your lender to have access to your financial information, including your credit, is a credit freeze a good idea?

When you apply a credit freeze you take your credit off limits for any checks. This will stop a thief from using your credit to buy a fancy new television, but it also makes it so legitimate companies that you want to access your credit aren’t able to.

However, the Economic Growth, Regulatory Relief, and Consumer Protection Act passed recently making it easier than ever for consumers to freeze and unfreeze their accounts, at no charge.

How to enact a credit freeze

If you think that your information has been compromised all you need to do is contact the three main credit bureaus, TransUnion, Experian, and Equifax. You will need to create an account and once you have done so you can place a request to freeze your account. You will have to create a password and PIN in the process so make sure that you protect this information.

What if you need to unfreeze it?

If you need to unfreeze your account in order to secure a mortgage loan you will need to work closely with your lender. Explain to them that you have placed a credit freeze on your information for security purposes.

You will of course need to unfreeze your account so lenders can access the information. But lenders can let you know when they are going to be running your credit so you don’t have to leave your credit unfrozen for a long period of time placing your security at risk.

Most lenders only check one of the credit bureaus so you will want to find out which one or ones they will be using. Armed with this information you can contact the credit bureau(s) and ask them to unfreeze your account.

Once you make your request this should happen quickly. Try calling back in an hour to confirm that your accounts are not frozen and your lender can proceed. Once you lender has received the information they are requesting you will want to freeze your credit again so you don’t leave yourself open for fraud.

This does take a little additional work on your part when buying a San Diego home. However, if you feel that your accounts could be compromised this is an effective way to protect yourself without ruining your chance of getting approved for your mortgage. Lenders are familiar with this situation and it should not stand in your way of buying a San Diego house.