Credit and FICO Scores

How does my credit scores affect my mortgage?

Your credit score affect your mortgage pricing.  The better the credit score, the better the interest rate or the lower the cost.  Your credit score is a crucial factor when an underwriter considers your mortgage application.  Your credit utilization over the past 24 months may also affect your ability to obtain a mortgage, this is called trended data.  We have multiple wholesale lenders we work with and we will work with you to help achieve your goals.  

If your credit score comes in higher, it may improve your rate and or pricing.  If it comes in lower, it make increase your closing costs as well.  We will review any material changes with you and we will not take any action without your prior approval.  

What are the credit score ranges?

  • Excellent ≥ 740 
  • Good 700-739
  • Average 660-699 
  • Fair 620-659
  • Poor < 620

How can I improve my credit scores?

For healthy credit, we usually recommend two to three open accounts. If you need to carry a credit card balance, never exceed 50%T of your credit limit. Always make your payments on time and do not close your oldest accounts.

How can I get a copy of my credit report?

To obtain a copy of your credit report, please review this link.  If you need any help, please contact us.

Why do I have three credit scores?

The three credit bureaus are Trans Union, Equifax and Experian.

What is a soft credit check?

A soft credit inquiry is a credit check that does not affect your credit. It’s usually from one bureau. It may not be the credit score used for credit consideration.

What is a hard credit inquiry check?

A hard inquiry is a credit check that will affect your credit because you are applying for a mortgage. Usually the inquiry will be from the three bureaus used in mortgage lending Trans Union, Equifax and Experian.

How may I contact the bureaus?

We recommend getting in contact with the bureaus by first visiting their websites, see links below.  Each bureau will handle phone communications differently.  We recommend you first try and resolve your issue through the website.  For example, you can obtain a copy of your credit report, file a dispute, request a fraud alert or freeze your credit all from the websites.  
 
Credit Bureau Dispute Section Links: