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Old 09-24-2007, 02:50 PM
 
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about to start shopping for mortgages and have a few questions

1) When looking at credit scores all the 3 agencies, do most places average the 3 or take the lowest?

2) How do most lenders view scores of a married couple? Do they take the higher, lower or average?

Thanks,
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Old 09-24-2007, 03:02 PM
 
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Lenders will almost always use the middle score (ie 680, 701, 705).

When married I think the automated underwriting will use both borrowers middle scores in the computations. Not an average, but both play into the analysis.
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Old 09-24-2007, 03:15 PM
 
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thanks a lot.
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Old 09-24-2007, 04:15 PM
 
Location: Beautiful East TN!!
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Well, when a married couple applies for a mortgage, the primary wage earner (which ever makes the most money) is the borrower and the other spouse is the co-borrower. The borrowers middle score is used even if it is lower than the co-borrows score.
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Old 09-24-2007, 07:50 PM
 
Location: California
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Everything said so far is true. To add to it though, certain loans will look at scores in different ways. A-paper type loans will evaluate everything, not just the scores. I've seen people get A-paper loans with 550 middle scores. Some loans have set guidelines as well, and those guidelines may apply to both borrowers. The primary wage earner's middle score will be the score used, however the co-borrowers score may need to be of a certain level to qualify. I've seen loans where a homemaker can't be on the loan due to a score that was too low, even though they make zero money.

www.annualcreditreport.com is the true free site to look at your credit report. Don't pay for the scores there as the scores they sell are not used by any lender. Just be sure everything is accurate, and it's always best to do this as soon as you start thinking about applying for any type of credit.
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Old 09-24-2007, 09:58 PM
 
Location: Charlotte, North Carolina
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I dont know what lenders you guys are using, but almost ALL of my lenders use LOWER of the two scores REGARDLESS of who makes more money.

Husband 720 740 710 = middle score is 720
Wife - 640 680 655 = middle score is 655

Lender will look at 655.
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Old 09-25-2007, 07:39 AM
 
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We are planning on applying for a mortgage in 3-5 months. Should we pay to look up our 3 scores on MyFico.com? If so, when should we do this?
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Old 09-25-2007, 08:32 AM
 
Location: Charlotte, North Carolina
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No.....just learn what the FICO consists of...and do the tips they ask.

It will be a waste of 40bucks for you...although it wont hurt your credit score.

you can go to annualcreditreport.com to view a free credit report every 12months.
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Old 09-25-2007, 12:18 PM
 
Location: Gainesville, VA
566 posts, read 2,851,854 times
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Quote:
Originally Posted by doublesuited77 View Post
about to start shopping for mortgages and have a few questions

1) When looking at credit scores all the 3 agencies, do most places average the 3 or take the lowest?

2) How do most lenders view scores of a married couple? Do they take the higher, lower or average?

Thanks,
In many cases it will depend on who makes 50% or more of the annual income. That person's middle score will generally be the one used. If you and your wife/husband make the exact same amount, then they will take the lower of the two middle scores.
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Old 09-25-2007, 12:22 PM
 
Location: Charlotte, North Carolina
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X, 802.02: “Representative” Credit Score

Credit scores are based on a single credit file for the borrower that is obtained from one of the three major credit repositories—Equifax, Experían, or TransUnion. Because the models used by each repository differ slightly and the amount of information in an “in-file” report may differ among the repositories for any given borrower, it is possible for a borrower to receive a different credit score from each repository. Therefore, we recommend that a lender obtain a minimum of two credit scores for every borrower. This enables the lender to select a single applicable score for underwriting each borrower—the lower score when two credit scores are obtained or the middle score when three credit scores are obtained.

When there is only one borrower, the single applicable score used to underwrite that borrower is the “representative” credit score for the mortgage. If more than one individual is applying for the same mortgage, the lender should determine the single applicable credit score for each individual borrower and then select the lowest applicable score from the group as the “representative” credit score for the mortgage. The “representative” credit score for the mortgage should be used to underwrite and evaluate the comprehensive risk for the mortgage application.
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