Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
Re: Lenders see different scores than consumers do

jcmoore0083 wrote:

I went to a bank today, confident that the transunion score Myfico.com gave me was accurate, (713). Had to sit infront of a loan officer and have her tell me my score is actually 677, and I can not be preapproved for a mortgage loan because the minimum is 680. I'm beyond irritated, and curious why a product offered by this site is incorrect. What did I pay for? False hope? Why did this happen?


Welcome! Sorry about the denial. Do you have the opportunity to go with an FHA-based mortgage? The requirements aren't as strict and the interest is just as low. On scores alone, you're qualified.

 

It's mentioned over and over in here with regards to mortgage loans that most of the lenders out there use a newer version of TU FICO than what is sold in here. This newer version is nicknamed TU04, whereas myFICO offers an older version of TU98. There are some mortgage lenders that use the exact same TU FICO as found on here, but finding one wouldn't be that easy. For some, their TU98 is higher and it is a rude surprise when they app and see a lower score. That happened ot me, though it was only a 10 pt difference. DW's was opposite, the TU from the mortgage lender was 30 points higher. Nice surprise.

 

If stuck with this lender and their product I would focus on TU. Three points is very easy to recoup. In fact, I'm surprised they didn't work with you. All you'd have to do is pay down CC utilization just by a little bit and they could have done a rescore to 680. It could be done that day via rapid rescore. Since lenders pull all 3 FICOs, and if TU was critical for you, then I'd focus on your lowest score too. Two of your three were under the 680. Again, there are plenty of lenders out there who will work with you whereby 680 isn't a requirement.