Is my FICO score really what’s used to get a mortgage?
Posted in Renting & Real Estate on 06/25/2009 10:08 pm by admin
SoCal G asked:
My wife and I are going to buy our second home. We’ve been in our current home for 15 years and have good equity. My sister who works for in the credit industry told me that the FICO score generated by the 3 bureaus is only a CONSUMER score and that the actual score used for a mortgage will be lower. For example, I know my current FICO is about 725. She claims it will actually be lower when a mortgage company runs my credit which could affect how much of a loan we get and the interest on it. Is this true???
My wife and I are going to buy our second home. We’ve been in our current home for 15 years and have good equity. My sister who works for in the credit industry told me that the FICO score generated by the 3 bureaus is only a CONSUMER score and that the actual score used for a mortgage will be lower. For example, I know my current FICO is about 725. She claims it will actually be lower when a mortgage company runs my credit which could affect how much of a loan we get and the interest on it. Is this true???
Please no personal opinions, cite references or industry experience if possible
Thanks to the early responses. We are very fortunate with debt/available credit.
We have 4 c/c’s each with approx $15-$20k limits and zero balance on all. We use them occasionally to keep some use going but no balances. They are all old accounts, about 4-15 years. No car loans. The only loan is a student loan with about $7k on it.
SAMUEL