Three national credit-reporting agencies, Experian, TransUnion, and Equifax Inc., are competing companies that assemble your credit information into numerical scores. A mortgage lender will usually get reports from one or more of these companies when you apply for a home loan. Because each reporting agency gets its information in a slightly different way, it’s not uncommon for your credit score to differ by 20–50 points. That’s not always a problem. Mortgage lenders will typically update discrepancies or reconcile differences in your report(s) to get a current picture of your credit for better (hopefully) or worse (unfortunately).
If there are problems, the lender may ask you to write a short letter explaining your side. Should you have to write one of these letters, keep it short and stick to the facts. Applicants sometimes get carried away and include the family history.
Although FICO credit scoring is the by far the biggest player on the block, a few mortgage investors have developed similar scoring systems to fine tune credit data for their market.
Also, other criteria can be added to the mix to determine your eligibility. For example, FHA (Federal Housing Administration) and VA (Veterans Administration) government insured programs give lenders some leeway to consider your individual situation.
If there are problems, the lender may ask you to write a short letter explaining your side. Should you have to write one of these letters, keep it short and stick to the facts. Applicants sometimes get carried away and include the family history.
Although FICO credit scoring is the by far the biggest player on the block, a few mortgage investors have developed similar scoring systems to fine tune credit data for their market.
Also, other criteria can be added to the mix to determine your eligibility. For example, FHA (Federal Housing Administration) and VA (Veterans Administration) government insured programs give lenders some leeway to consider your individual situation.
No comments:
Post a Comment