Are you getting your credit score from big companies like Credit Karma?! Is your score higher (or lower) than you expected? Here’s why…
You have more than one credit score! The two most common general scoring models used are FICO and Vantage Score. Your score may differ between the two different models. Experian, Equifax, and Trans Union are the Credit Bureaus, not credit scores.
Each credit score can have multiple versions – think of them as models of computers, Mac vs PC, Windows 10 vs Windows 8, etc.
The Federal Housing Finance Agency has specific credit-score requirements for Fannie Mae or Freddie Mac loans. Because of this, mortgage lenders can only use certain models of your FICO score. VantageScore cannot be used in mortgage lending.
Most lenders will only check one number when running your credit score (credit cards, auto loans, personal loans, etc.) whereas mortgage lenders will pull from multiple bureaus.
Mortgage lenders will look at more than just your credit score- we’ll dig deep into any red flags or reasons why your score has changed.
Credit scores vary across apps and lenders due to when your data is accessed, what scoring model they are using, and what underlying data coming from the companies reporting to the bureaus has updated since the last score was generated.
Making on-time payments will help ALL your credit score!
Contact us today to learn more! Ready to get started? We’re here to help!
Tim Erickson
P: (652) 451-2273
E: tim.erickson@goluminate.com
W: www.TimEricksonMortgage.com
Mark Henderson
P: (651) 398-3477
E: mark.henderson@goluminate.com
W: www.MarkHendersonMortgage.com