The cost of pulling credit reports could rise by as much as 50% in 2026 — what's behind the steep increase

Core Insights - The rising cost of credit reports is significantly impacting the overall closing costs for homebuyers, with prices increasing by 40% to 50% over the past year [2][6][7] Closing Costs Overview - Closing costs for a mortgage typically range from 3% to 6% of the total mortgage price, translating to approximately $12,159 to $24,318 for a median-priced home in the U.S. valued at $405,300 [1][2] - The Mortgage Bankers Association (MBA) highlights that the lack of competition in the credit score market is a primary factor driving up these costs [6][7] Credit Report Costs - A tri-merge credit report, which combines data from all three major credit bureaus, is essential for lenders but incurs costs that can reach nearly $100 for individuals and $200 for couples due to the need for two reports during the mortgage process [5][6] - The MBA has requested the Federal Housing Finance Agency (FHFA) to allow lenders to pull a single report for clients with credit scores over 700 to alleviate some of these costs [6] Additional Costs Associated with Home Buying - Homebuyers should be aware of various fees beyond the mortgage price, including application and credit fees, origination and underwriting fees, home inspection fees, appraisal fees, title fees, and transfer taxes [9][13] - Closing costs can represent a significant portion of the total home purchase price, potentially extending the timeline for saving for a down payment [10]