Credit scores play an important role in the home loan process. I have discussion with borrowers and home buyers at least couple times a day about how they already know their credit score from these FREE credit reporting website. I know some of the credit cards offer this service and also some bay area companies have this service for their employees as the benefits. However, MAIN thing to notice is that the credit scores for mortgage activity are different than those from these FREE credit agencies. That is the important point everyone MUST remember.
First thing to do is have a mortgage professional, like me, analyze your financial situation. Once I have all the documentation, I will analyze credit, debts, income and assets to understand true mortgage qualification. As you know credit scores range from 350 all the way to 850. There are Three credit bureaus – Equifax, Transunion and Experian. The Mortgage credit report run using all 3 bureaus is called a TRI-MERGE credit report. All bureau scores are not identical. So lenders ignore the high and the low scores and consider only middle score. This middle score is used for determining the mortgage rate. Listen on and learn more about Credit Scores and Home Loans.