Your Mortgage Fico Score vs Free Credit Scores
Did you know that there are different types of FICO credit scores? There are scores that credit card companies use and different scores that auto finance companies utilize. Scores from sites like Credit Karma won’t give you the score that will be used when applying for a mortgage.
Mortgage companies use FICO scores reported by the three credit bureaus, Experian, Equifax and Transunion. FICO is named for the data analytics company that created it, Fair, Isaac and Co.
It’s important to know your actual FICO scores and obtain a copy of your “tri merged” credit report, which reflects all three credit bureaus before applying for a mortgage.
Mortgage lenders will disregard your high and low scores and use your middle FICO for qualifying. Price differences occur at the following levels, with the most significant levels in bold.
620, 640, 660, 680, 700, 720, 740, 760, 780
You can obtain a free tri merged credit report from annualcreditreport.com, and they will additionally provide your FICO scores for a nominal fee.
If your FICO score is close to the next highest level above, it may be worth improving your score prior to applying for a mortgage. Visit Tips to Improve your FICO Score for information that’s helped our borrowers raise their scores. We can also run a “What If” scenario, that will tell you what to do to reach a target score level. If interested just call or .