THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, July 2, 1994 TAG: 9406300464
SECTION: REAL ESTATE WEEKLY PAGE: 16 EDITION: FINAL
COLUMN: MORTGAGE MATTERS
SOURCE: David Gilbert and Helen E. Dragas
LENGTH: Medium: 57 lines
Q. Several months ago, I went to the local credit bureau and had several items on my credit report corrected. Last week, I applied for a loan and those mistakes appeared on my credit report again. Why?
A. The reason this happens is that there is more than one credit bureau. Equifax, TRW and Trans Union are the three national credit repositories, and just about all local bureaus are affiliated with one of them.
The three companies compete with one other. Each wants its own files to be the most accurate. They won't trade information to help a rival's files become more up-to-date.
The best way for consumers to make sure their credit file is accurate is to contact all three companies from time to time and go over their credit report for accuracy and completeness. Here are the addresses and telephone numbers of the three national firms:
Equifax Credit Information Services Inc.: 5505 Peachtree Dunwoody Road, Suite 600, Atlanta, Ga. 30342. (800) 879-4094.
TRW Information Service: P.O. Box 2102, Allen, Texas 75002. (800) 392-1122.
Trans Union: P.O. Box 390, Springfield, Pa. 19064. (215) 690-4909. Appraisals are vital
Q. My wife and I are buying a house in an established neighborhood. We have applied for a mortgage and our lender is requiring an appraisal. I feel comfortable with the price we are paying because we have examined the tax records in the city. Why must we pay an additional fee for an appraisal?
A. Tax records are important documents, but they may not be an up-to-date assessment of market conditions. An appraisal gives the mortgage lender a current view of the value of the home being bought.
An appraisal is required for mortgages underwritten by the Department of Veterans Affairs or the Federal Housing Administration. They're also required for loans underwritten to the standards of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp.
Appraisers are required to evaluate a home using the best comparable properties that have sold and closed in the past six months. Some allowances are made for an area with few comparable sales or slow turnover.
Remember, market conditions can change sharply in a short period of time. Appraisals are a necessary part of your loan package. MEMO: David H. Gilbert is president and Helen E. Dragas is immediate past
president of the Tidewater Mortgage Bankers Association. Send comments
and questions to Real Estate Weekly, Mortgage Matters, 150 W. Brambleton
Ave., Norfolk, Va. 23510.
To submit questions by phone, call 446-2060; by fax: 446-2531.
by CNB