General Credit Topics

[CarolMarcine]

Why are the Fico scores different that a mortgage lender uses compared to what I can access myself? They are dramatically different.

[HouseHunter]

I am going to be purchasing a home for the first time soon and am very curious about this.  What were your FICO scores vs the scores the lender gave you?

[Sandi1026]

Mortgage lenders get a very detailed report. They often get from a different company. You should go to a mortgage broker instead of a bank to get a home loan.

[dogman]

I hope to purchase a home soon. Can I go to a lender and let them know I want to purchase a home but need to clean up my credit report 1st and would like to get a credit report from them?

[fused]

Sandi1026:

Not sure why you think it's better to get a mortgage with a broker.  It's guaranteed you will pay more interest, points and other fees.  Anyone with good FICO scores (over 720) should get an "A PAPER" mortgage with a bank.  Better yet if one qualifies for an a paper mortgage, try doing so with their own bank seeing they already have some of the information and documentation required during the underwriting process.

[Boswd]

I would print out all three of your CR and bring them into your Bank and let them tell you what you need to do to qualfiy instead of them doing a hard inquiry.

[boheme]

There is no guarantee that a bank will get you a better deal than a broker. There are times when it may work out better to use the bank, but there are also a number of times where going to a broker would be a better choice.

The best thing with a broker is that they generally have access to a number of different lenders and programs. Why is this important? Some lenders will lower there rate on 1 or 2 particular loan programs to corner that particular part of the market. A bank may not be that lender and hence you may have a rate .25% - .5% higher. Also, if you find a good broker, they will help you find the correct program for your current situation that is also in allignment with you future goals.

[fused]

boheme:

I strongly disagree with you.  There was not a single mortgage broker in my area who could offer me better terms and even service than my bank.  All of them say they cannot match the offer I received from my bank.

[jennmarie93]

I don't know what kind of report mortgage brokers use, but if you ask them this question they'll probably tell you the answer. We've been very happy with our broker so far. It took him awhile to find us something since our credit is still in the tank, but once that was settled he's been very good to work with.

[boheme]

fused111,

There are times when a bank will be able to get you a better rate, but not always. There are scenarios where I would go to a bank directly myself, but not every scenario. Banks generally have tighter guidelines and fewer options although the product selection has increased.