1. Credit Scores Used By Lenders For Mortgage Qualification
* Credit Scores is one of the most important factors when it comes to qualifying for a mortgage loan.
– Many home buyers and homeowners who are planning on refinancing often get confused on which credit scores used by lenders
– There are three different credit reporting agencies, also called credit bureaus
– Each consumer who has had credit will have three different credit scores from each one of the major three credit bureaus
– The three giant credit reporting agencies are Transunion, Experian, and Equifax
2. Fannie Mae And Freddie Mac Mortgage Guidelines
* Fannie Mae and Freddie Mac are the two mortgage giants in the United States that set Conventional Loan Requirements .
– Fannie Mae and Freddie Mac both require a 620 minimum credit score for a borrower to qualify for a Conventional Loan
– Most Jumbo Lenders require a 700 credit score for a borrower to qualify for a Jumbo Mortgage
– The credit scores mortgage lenders are talking about is the middle of the three credit score from the three giant credit reporting agencies: Transunion, Experian, and Equifax
– For example, if a borrower has a 600 credit score for Transunion, 700 FICO for Equifax, and 800 FICO on Experian, the middle score is the 700 FICO from Equifax is used
* The 700 FICO from Equifax will be the credit score used for this borrower when the mortgage lender is qualifying this borrower.
For more information on this topic and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at email@example.com.
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