Which FICO Score matters when you're applying as Husband and Wife?

[Anonymous]

My wife and are going to apply for a mortgage and I'm the only one working currently.  Whose FICO Scores matter?   Is it mine, since I'm the only one working?  Is it an average?  Is it the Worst or Best?  The reason I ask is that my score is Good, but my Wife's is Great!  Does anyone know how that will play out?

[Anonymous]

They will use the lowest of your guys midscore. 

[Anonymous]

Thanks, but just to be certain that I'm clear:

Midscore equals the Report with the Middle Score, not an average of the three scores?  Is this a fairly common practice and if so, does that mean that the Lower Score should not impact me?

[Anonymous]

They will look at your 3 scores and see the middle of the three and then do the same for your wife.  Then, they will go by whichever of those 2 scores is lower.  So, the lowest of both of your midscores... 

It is not an average.

[Anonymous]

Hey Ironferg,

It is common practice and standard procedure for mortgage lenders

to throw out your highest and lowest FICO scores and use the one

in the middle. They do not add all 3 together to come up with an

"average score", and the highest and lowest scores have absolutely

no impact whatsoever. 

Example: If your scores are 660, 680 and 745, the qualifying score

for your mortgage will be 680. They don't add all 3 together and average

your scores, and the 660/745 are thrown out with no impact on you. 

Hope this helps. Enjoy the evening!

CanDo

"The right attitude is everything" 

[Anonymous]

Thanks a lot for all of your help today, it's really helping out!  While we're on the topic and now that I get that the low and high scores go, will they still ask questions about a bad account on the Low Score Report?

[Anonymous]

Hey Ironferg,

I'm glad to hear that our comments are helping!

In my experience, if the same bad account(s) appear(s) on all 3 reports

then yes, most likely they will ask about it/them. But lenders only use

the information on the report from the middle score to qualify you for

a mortgage.

This next point is very important: No matter what questions they ask

you, answer them honestly. I can't stress that enough. As long as you

do that, you'll be fine. 

Lenders get paid to make loans based on your middle score, so that is

where their focus lies. But like I said, if they ask you a question

just answer it honestly.

CanDo

"The right attitude is everything" 

[Anonymous]

Can Do,

That second piece of advice is so helpful and important, THANK YOU!  I've had to learn that Honesty is the best policy and it has really paid off for me in all areas of life!  Plus it makes sleeping at night a whole lot easier.

Keep that Can Do attitude going in 09' and all the best to you!

[ShanetheMortgageMan]

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@Anonymous wrote:

In my experience, if the same bad account(s) appear(s) on all 3 reports

then yes, most likely they will ask about it/them. But lenders only use

the information on the report from the middle score to qualify you for

a mortgage.

---

That might have been the situation in your experience but 99.9% of lenders use information from all 3 bureaus, not just the information from the bureau with the middle score.  So it doesn't matter if one has a 740 score, a 780 score, and a 400 score, they aren't going to throw out all of the negative information on the bureau with the 400 score... inversely, if you have a 400, 420 & a 750 score, and the 400 & 420 score bureaus don't have a lot of positive information the 750 score bureau has - they won't not consider the good credit from the 750 score bureau credit report.

[Anonymous]

Thanks Shane!!!

In my case, the info on my reports was pretty much the same.

The baddies that I had stood out like a sore thumb and were on

all 3 reports, so that's why I posted what I did.

Your point is well taken. Lenders are not blind, and they are entitled

to ask whatever questions are needed in order to make a decision.

After all, it's their money... 

So I appreciate the correction. Thanks again!

CanDo

"The right attitude is everything"