Mortgage Score vs. Credit Score?

Reporter: Nick DiUlio

Publication: Credit Card Forum


Deadline: Apr 13, 2017 6:00 pm

So you’re applying for a mortgage and do your homework by pulling your credit scores. But, in the mortgage lender’s office they read out numbers that are totally different — even if only by a few digits. Why? Part of this may be the fact that you’re checking a different score (not FICO) like your VantageScore. But even if you do pull your actual FICOs (maybe your credit card gives you your FICO score for free), the numbers a lender reads you may be different because lenders use customized industry scores (in this case, a FICO score for mortgages). This can be very confusing for the average consumer. I’m writing an article aimed at a few different aspects of this subject. 1) What are the various scoring models out there (FICO vs Vantage)? 2) Why do lenders use FICO scores tailored to their industries, which might be different from the FICO score you get for free from your credit card? All told the piece will be addressing someone who is confused by the fact that the digits the mortgage lender reads out are different from the score they just looked up. If you have experience in mortgage lending and/or credit scoring as it pertains to the mortgage industry, I would love to hear from you. How do mortgage lenders use specific models to assess creditworthiness and how can we explain this in simple language to an average consumer?

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