How Long Does a Credit Report Last for a Mortgage?

A credit report provides lenders with insight into an applicant’s financial history and creditworthiness. For mortgage seekers, this document is fundamental, as it helps lenders assess the risk of extending a loan. The report compiles information on credit accounts, payment behaviors, and public records. Understanding how long this information remains visible is important for the mortgage application process.

Validity Period for Mortgage Applications

A credit report for a mortgage application is typically valid for 90 to 120 days. This timeframe ensures the financial information used for underwriting is current. If the mortgage closing extends beyond this period, the lender will likely need a new credit report to re-verify the borrower’s financial situation.

This re-pull confirms no significant changes, like new debts or financial setbacks, have occurred. Lenders must ensure the borrower’s financial stability remains sufficient. A new report doesn’t usually indicate a problem, especially if delays are due to standard processing or administrative issues.

Impact of Mortgage-Related Credit Inquiries

Applying for a mortgage involves a “hard inquiry” on your credit report, which occurs when a lender accesses your credit file. This inquiry can remain visible for up to two years, though its effect on your credit score is typically minor and temporary, usually lasting about 12 months.

For mortgage applicants, the “rate shopping” rule is important: multiple inquiries for the same loan type within a condensed period are often treated as a single inquiry by credit scoring models. This allows consumers to compare offers from various lenders without unduly penalizing their credit score. This shopping window typically ranges from 14 to 45 days, consolidating multiple mortgage inquiries into one for scoring purposes.

Reporting Periods for Credit Information

The duration credit information remains on a report varies by entry type. Positive accounts, like active credit lines paid as agreed, stay on your report as long as they are active. Closed accounts paid as agreed can remain for up to 10 years from the closure date.

Negative information has specific reporting periods. Late payments typically remain for seven years from the original delinquency date. Collection and charged-off accounts are generally reported for seven years from the first missed payment date. Even if paid, they may show for the full seven-year period, though their impact on scores lessens over time.

More severe financial events, like bankruptcies, have longer durations. A Chapter 7 bankruptcy can stay for up to 10 years from filing, while a Chapter 13 typically remains for seven years. Foreclosures are generally reported for seven years from the first missed payment that initiated the process. While the entry remains, its negative effect on credit scores diminishes over time.

Public record items, such as civil judgments and tax liens, are generally no longer included on credit reports by major bureaus. These items were removed from credit reports in 2017 (judgments) and 2018 (tax liens), so they no longer directly impact credit scores via the report. However, the underlying debt or financial distress may still be reflected in other aspects of the credit report or public records research.