Credit can be confusing! I have a lot of clients who apply for a home loan with me and some are horrified to find that the scores I pull might be 20,30, even 50 points different than what they saw via an online source or credit monitoring. First let me tell you this, I don’t benefit from you not qualifying for a home loan. I want each of you to have the highest credit scores possible so that we can get your deal done. However, there is a reason that the scores you see from a bank (or me) will be significantly different than the ones you pull online.  The reason is simply that the “Credit Karma’s” of the world try to mimic the algorithm that the lenders use, however those algorithms are very tightly held secrets that we as consumers don’t have access too.   They are weighted based on different factors, debt to available credit, how recently you applied for credit, total debt you have, any missed payments in the past, etc.  each company does it a little different.  Similarly when you are applying for a mortgage, they weigh those factors differently than they do if you were for an example buying a car, or applying for a credit card.  At the end of the day, we don’t have to like it, but the credit scores that we use to apply for your loan are the numbers we have to use for your mortgage.  Credit scores will be the same from a loan type perspective, if you use us me, another bank, or a different mortgage broker to do your loan.  Because neither of us benefit from you getting the loan you want and closing on the house of your dreams, or refinancing to a lower rate, I have recently partnered with Mycreditguy.com to help our clients repair their credit as quickly and effectively as possible.  This is a great service that helps us get your score where in needs to be to get you the best mortgage rates possible.

Take a few minutes to watch this video and then let me know if you have questions about your credit OR if you’re ready to start the mortgage process.