Credit Score and mortgages

User Forum Topic
Submitted by Blissful Ignoramus on January 15, 2009 - 12:34pm

My wife (due to a parking ticket she didn't know about going to collection in 2002) has a Transunion credit score 90 points lower than the other two. Mine are all three within about 30 points. Other than the one low one of my wife's, they're all in the 780s/790s.

How do mortgage lenders look at that? Do they average across the three scores? Take the lowest score? The highest?

Thanks!

‹ mortgage loan origination(s) Help for young couple buying a first-time condo with FHA? ›
I would think they avg the
Submitted by waterboy on January 15, 2009 - 12:37pm.

I would think they avg the three but I also have the same question. To add to it, if 2 people are on loan do they avg all 6 scores? Thanks

"How do mortgage lenders look
Submitted by FormerSanDiegan on January 15, 2009 - 12:38pm.

"How do mortgage lenders look at that? Do they average across the three scores? Take the lowest score? The highest? "

None of these.

They typically use the median (the middle score)

FormerSanDiegan wrote:"How do
Submitted by Blissful Ignoramus on January 15, 2009 - 1:13pm.

FormerSanDiegan wrote:
"How do mortgage lenders look at that? Do they average across the three scores? Take the lowest score? The highest? "

None of these.

They typically use the median (the middle score)

Good news. Thanks!

Former is
Submitted by HLS on January 24, 2009 - 12:25am.

Former is correct...
Confirming that the middle score gets used.

In the case of 2 people on a loan, the lowest borrower's middle score is used to price the loan.
This can be costly.

If someone's income is not needed for a loan, it is possible to be on the deed without being on the loan. Their credit score & income isn't used.

If you are on the loan, you must be on the deed.