What FICO Score is Pulled When I Apply for a Mortgage?

Loans
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5
 Min read
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January 26, 2022

Your credit score is like a report card that potential lenders use to evaluate your creditworthiness. The most common credit-scoring model used to evaluate your credit is your FICO score, but there are actually several different types of FICO scores. When you’re getting ready to apply for a mortgage, you may wonder “What FICO score is pulled when I apply for a mortgage?”

Types of FICO Scores

Lenders can choose to look at different versions and types of your FICO score depending on a variety of factors such as what type of loan product you’re applying for. The two main types of FICO scores are base scores and industry-specific scores. 

Base scores are intended to predict the likelihood that you may not repay as agreed on any type of credit. This scoring model is periodically updated as lending practices and consumer use practices change over time.

Industry-specific scores are designed to help lenders make a decision on an application for a  particular type of loan product. For example, auto lenders are interested in the FICO Auto Score. Mortgage lenders are most likely to use FICO Score 2, FICO Score 4 or FICO Score 5. Each is based on one of the three credit bureaus.

All Your Scores Matter

Each of the credit bureaus may have slightly different information since your current creditors aren’t required to report to all three. Even though you have slightly different scores based on the credit bureau and scoring model, mortgage lenders may pull a single report that contains information from all three credit bureaus. They may base their decision on the middle score of the three scores or use a different approach. Since there’s no way to know for sure which score is being used, the information on all three credit reports is important.

Other Factors Used in Mortgage Lending Decisions

Your credit score isn’t the only factor that’s considered when processing a mortgage application. Lenders also consider other information on your credit reports, such as whether there’s a recent bankruptcy or collection account. They’ll also consider bank statements, tax returns, length of employment, and how long you’ve lived in the same place. A larger down payment may help your chance of being approved if your credit isn’t perfect.

Getting Ready to Apply for a Mortgage

Try to have your credit in the best possible shape before applying for a mortgage. Catch up on any past due bills and pay down credit card balances to lower than 30 percent of your available credit. Check your credit report to make sure all the information being reported is accurate. If there are any wrong balances being reported or errors in payment history, it can affect the outcome of your mortgage application.

If you find one or more errors on your credit report, Dovly can help you get them fixed. Dovly is an automated credit repair engine that can work with the credit bureau for you to have any errors removed. Try it risk-free with our free membership tier. Contact Dovly today.


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