topic Re: Before I purchase the 3B credit reports... in Mortgage Loans

Before I purchase the 3B credit reports...

Anonymous — Tue, 23 Feb 2016 02:27:41 GMT

Hello - I love these forums! Lots of useful information, but I am still confused by credits scores used for mortgages. I have our Experian Fico8 scores just pulled this weekend and hubs and I have 844 and 838 for FiCO8 scores. I know these are good scores, but how much difference in points have people noticed with the mortgage scores compared to Fico8? I figured if we can expect to be in the same range as Fico8 then I won't worry about purchasing the 3B reports just yet.

Thanks!

Re: Before I purchase the 3B credit reports...

jd403 — Tue, 23 Feb 2016 02:32:43 GMT

From everything I have read on here there are different variations depending on anindividual situation. Personally speaking, my mortgage scores are about 20-25 above my FICO 8 scores. Pulling my full 3B with mortage scores gave me peace of mind on the same day I had lenders pull. Good luck!

Re: Before I purchase the 3B credit reports...

GirlMelanie89 — Tue, 23 Feb 2016 03:43:58 GMT

Hi! Welcome to the forum! unfortunately, I dont have a concrete answer for you, as members can have low FICO 8 scores and high FICO 5 scores or vice versa. It just depends on the person. Personally speaking, my FICO 8 score is higher than my FICO 5 score, which sucks for mortgage purposes but ok for other things. My credit reports should updat over the next few weeks, as I have gone from 83% util to 1% so Im curious to see how this will affect both scores. I will keep you posted! Awesome scores BTW!!!

Re: Before I purchase the 3B credit reports...

StartingOver10 — Tue, 23 Feb 2016 21:41:43 GMT

@Anonymous wrote:
Hello - I love these forums! Lots of useful information, but I am still confused by credits scores used for mortgages. I have our Experian Fico8 scores just pulled this weekend and hubs and I have 844 and 838 for FiCO8 scores. I know these are good scores, but how much difference in points have people noticed with the mortgage scores compared to Fico8? I figured if we can expect to be in the same range as Fico8 then I won't worry about purchasing the 3B reports just yet.

Thanks!

I understand where you are coming from...but if you are going for a mortgage, wouldn't you want to know as much as possible about your credit, income and debt before you make application?

FICO 8 and FICO mortgage scores are different algorithms so they are measuring different aspects of your CR. In my case my mortgage scores are higher than my FICO 8s but there are others that have the reverse. You don't know if you don't pull the scores here. IMO it is worth the expense to know before you see a LO. Check around to see if there are any FICO promo codes on the net so you can save a few dollars when you pull the 3 B report. Note, when you pull the scores here it is a SP, so that is a good thing too.

Here is a little bit of info on the different FICO score models so you know what you are purchasing:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/The-many-flavors-of-FICO-Editions-versions-and-variations/td-p/1197617

Re: Before I purchase the 3B credit reports...

bdhu2001 — Tue, 23 Feb 2016 22:46:32 GMT

When do you plan on purchasing? If you already have your down payment & DTI worked out, then pay for your scores so that you know what you're dealing with instead of guessing. I've seen people with scores 60 pts lower. Also understand that lenders go with your lowest middle score. That means they'll go with whoever's middle score is the lowest between you and your husband. You need a middle score of 740 for the best interest rates and 760 for best PMI.

If you plan to buy soon, pay for the subscription & work with your score until you get it where you want, then cancel the subscription. For $29 to start or $60 for both of you, it's better to not be shooting in the dark. Remember that when a lender pulls your score, they'll be a slight reduction for the inquiry. If your mortgage shopping, you'll get quite a few hits. They're only supposed to count as 1 inquiry if you do them all within two weeks, but many times you'll find additional hits. If you know your score you can negotiate and find out their best rate before you let them pull your score.

When my EX 08 score was 838, my middle mortgage score was 780. Your EX score has no relation to the other two CBAs. The scores can be wildly different.

Re: Before I purchase the 3B credit reports...

Anonymous — Tue, 23 Feb 2016 23:12:01 GMT

Not trying to hijack the thread, but does the 29.99 subscription provide daily score changes? I just paid off a 6k credit card about 10 days ago and plan to go through preapproval in about 4-5 weeks from now. I wouldn't want to order today unless it will show me updates that are close to real time. Thanks

Re: Before I purchase the 3B credit reports...

jd403 — Wed, 24 Feb 2016 00:16:33 GMT

@Anonymous wrote:
Not trying to hijack the thread, but does the 29.99 subscription provide daily score changes? I just paid off a 6k credit card about 10 days ago and plan to go through preapproval in about 4-5 weeks from now. I wouldn't want to order today unless it will show me updates that are close to real time. Thanks

You can sign up for alerts which if you register your email and cell, you'll get alerts anytime you have a trigger event. I also download the app on my phone and check on an almost daily basis.

When is the due date on the credit card you paid down? Typically, your statement will cut a few days after. So if you were due on the 20th, statement may cut the 23rd. Usually 4-7 days later, FICO 8 updates. Remember though, mortgage scores are different than FICO 8 scores and a jump in your FICO 8 doesn't mean you'll always see one in your mortgage scores.

Re: Before I purchase the 3B credit reports...

Anonymous — Wed, 24 Feb 2016 02:58:59 GMT

Thanks for the helpful info! I bit the bullet and purchased just mine and my lowest mortgage score was 799, so I guess I'm good with that for now Looking to purchase a new home later this spring/summer.

Re: Before I purchase the 3B credit reports...

Anonymous — Wed, 24 Feb 2016 03:38:01 GMT

JD403, not until March 1st, which is why I am waiting until the last week of March to see my LO. My scores aren't great, my mid 8 score is 668, but my mid jumps to about 712 in the simulator when paid. These are the scores that show when I click on 3B report on app

Re: Before I purchase the 3B credit reports...

bdhu2001 — Wed, 24 Feb 2016 13:17:01 GMT

@Anonymous wrote:
Thanks for the helpful info! I bit the bullet and purchased just mine and my lowest mortgage score was 799, so I guess I'm good with that for now Looking to purchase a new home later this spring/summer.

You're doing awesome. Do you also know what your husbands middle mortgage score is? If you've both been responsible with your bills then I wouldn't bother to purchase his right now. If your money is saved, start looking for your home. Look on Zillow and this site to give ideas on the current going interest rates.

If you use mint, set up the goal to purchase a home. It'll give you ideas on savings amount and amount of home you can afford.

Great job! And keep up the good work.

Re: Before I purchase the 3B credit reports...

Imperfectfuture — Fri, 26 Feb 2016 10:50:12 GMT

@Anonymous wrote:
Thanks for the helpful info! I bit the bullet and purchased just mine and my lowest mortgage score was 799, so I guess I'm good with that for now Looking to purchase a new home later this spring/summer.

Nice score.