The difference between your internet credit score and what a mortgage company will use

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credit scoreI am taking advantage of the current low mortgage rates and refinancing! I fired up Credit Karma and was surprised to see that my score had dipped. My bank also provides my credit score, which was in line with what Credit Karma was providing – just one point under 720. UGH!!! Apparently, I had used one of my credit cards a little more than I should have over the holidays for some home improvements. One digit in your credit score can make a significant difference in your mortgage interest rate and the cost associated for the rate.

You can imagine my relief when my credit was pulled and the tri-merged credit report from Mortgage Master Service Corporation revealed that my credit scores are 750, 737 and 747.  Lender’s use the mid-score of all three scores. My “mid-score” is a 747. A difference of 28 points – PHEW!  This is still lower than what I would like it to be – however, anything over 740 provides you with preferred pricing and rates with most mortgage loans.

I want to share this information with you so that you know to take the credit scores that you have access to with a grain of salt. Odds are, they are not going to be what a mortgage company will use when you are buying or refinancing a home. Your scores may be higher or lower. Don’t let what you find online stop you from contacting a licensed Loan Officer for a preapproval for a home purchase or refinance.

If you’re considering buying or refinancing a home located anywhere in Washington state, I’m happy to help you!

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