The writer is a BC mortgage broker who specializes in bad credit mortgage applications.
The credit report should verify all the information disclosed on the application, especially the number of creditors and amount of outstanding debt. Occasionally, there are discrepancies since many applicants cannot remember all details exactly. The lender should compare the credit report information to that disclosed on the application. If this comparison shows significant discrepancies, major omissions, or erroneous information of a serious nature for the most recent two years of credit history, then the applicant should provide a written explanation.
Additionally, some creditors do not report to a national credit repository or report infrequently, so the information is outdated. In these cases the lender will complete verification by mailing a Verification of Loan form to the creditor or by requesting the applicant provide a loan statement. In either case, the lender attempts to verify the same information that would be included in a credit report.
An applicant may not be aware of some of the information contained in a credit report, especially if the information is incorrect. If the applicant believes a mistake has been made, the lender should advise the applicant to discuss the information with the credit bureau directly. On occasion, credit bureaus receive wrong information that can be corrected by a discussion between the applicant and the credit bureau.
Duncan Seward is a Vancouver mortgage broker. Mortgage BC is the focus of his business. He is an expert in bad credit mortgage refinance applications. Poor credit loans need not be a concern to clients with a damaged credit histories.