Most consumers we meet with come to us with an already-established credit score that they’ve pulled from a consumer website and they monitor periodically. They’re often puzzled when they find out that their consumer score isn’t the same as what we, their lending company, come up with.
It’s important to take note of the fact that consumer sites aren’t selling you a FICO credit score. The significance of this is most lenders use FICO scores when assessing your level of risk for loan approval.
To be sure, there are a few sites that will generate your credit score vis-à-vis the FICO model. Even still, your lender’s version, designated as “version 4,” will differ from that of the consumer website’s. Sometimes, though, the scores are comparable, and other times, there’s quite a gap between them.
The bottom line is if you’re not already monitoring your report, now is a good time to start. It’s fairly inexpensive and AnnualCreditReport.com will actually allow you to pull your report (not to be confused with your actual score) at no cost.
Monitoring your credit in advance of purchasing a home will eliminate any surprises when it comes time for your lender to calculate your score.
If you’re thinking about buying, selling, or refinancing a home in the near future, please reach out to me. I’d be happy to have a conversation with you and lead you down the right path to help you get the best terms possible. I hope to hear from you soon!