Mortgage payments help build good credit, but oftentimes, many homeowners fail to check their credit reports on a regular basis. If you happen to see that your mortgage payments are not listed in your credit report, here are some reasons for that.
A missing mortgage payment from your credit report could happen because of two reasons: someone else applied for the loan or there has been a change in your loan servicer, Realtor.com reported.
According to the publication, regular mortgage payments are a great way of building good credit, which could then enable you to find better options for refinancing later on. However, what many people fail to realize is that only the one who signed and applied for the mortgage gets credit for paying the mortgage.
The publication then noted that the person who applied for the loan and the name and Social Security number indicated on the application will be the one tied to the property. This means that it does not matter whether someone else will be paying for the mortgage, as the one whose name is in the mortgage application will still be the one getting credit for it.
If the one who owns the mortgage loan has already passed away, the publication stated that there may be a need to refinance in order to have his payments credited in his reports.
In the case of a change in loan servicer, the publication noted that there is usually a 60-day window, in which you won't be seeing your mortgage payments reflected in your credit report.
Smart Credit also offered an explanation regarding the difference between a mortgage credit report and a regular one.
The outlet cited that a Residential Mortgage Credit Report (RMCR) differs in such a way that it requires an extensive review of your documents and scores. This is because a mortgage loan is a bigger risk for lenders due to its high amount and the length of time before the loan gets paid off.
