Mortgage Credit Report | FICO Score vs Credit Karma | Why Are My Scores Different?

[@apainterlyhome]

Julee. Dear Julee. WHY, OH WHY??? are you the FIRST EVER PERSON TO EXPLAIN FINANCIAL MATERIAL IN A WAY WE CAN ALL UNDERSTAND? AND HOW WILL WE EVER THANK YOU ENOUGH?! I am SO VERY TIRED of being talked down to or mansplained as if I am an idiot! WE OWE YOU A DEBT OF GRATITUDE. Really. Just Thanks.

[@workshopmortgage]

Hi Susan! You are SO welcome! Your kind words and effusive thank you have made my day (and are almost embarrassing me a little bit 😊) I'm so happy you stumbled on my videos (thanks KZbin algorithm!) and thrilled that I was able to help you better understand some of this stuff. Most of what financial professionals do isn't that complex and shouldn't be hard to understand. Nobody should ever talk down to you or anybody else... that's a red flag, if I'm being honest! Have a wonderful day and thanks again for the lovely comment!

[@martiniqueardell7251]

Aha! Now I understand. I have myFico and didn't even realize all the function until watching this video. Thanks, Julee!

[@workshopmortgage]

Excellent! I'm happy you'll be getting a little more value for your subscription to myfico.com (it really is a good service!) AND that you have some additional understanding of this topic. It's genuinely confusing!

[@nephewsque6751]

Great video and helpful information. Thanks 👊

[@workshopmortgage]

You're welcome! 🤜🤛😁 Glad you found the information helpful!

[@anthonycooper275]

Help my current score is low, but my mortgage payment history is flawless. My mortgage score is low, my credit karma score is lower but, they’re above the minimum, have a 100k to put down on 460k home. I contacted a lender that does mortgages loans with fico score as low as 500. Help

[@workshopmortgage]

Hi Anthony! Mortgage underwriting takes a lot of variables into account. Your mortgage payment history is important and weighted very heavily, however, other factors figure in too. With your large down payment, having a lender try running your application through automated underwriting for an FHA loan, is one idea. FHA can be pretty generous about derogatory credit items and a lower credit score, so long as you have some other compensating factors. One important one can be leaving some money out of your down payment, so that you have cash reserves left over after savings. Another interesting thing about automated underwriting for FHA loans is that it seems to really like having a second applicant. So if you applied for this loan by yourself, adding a cosigner (whether they will be living with you or not) is something else you can try. I hope these ideas help!

[@anthonycooper275]

Thank you

[@workshopmortgage]

@@anthonycooper275 You're welcome!

[@lauriemarcellus4555]

So all your saying is. Credit scores are bullshit. How can there be that many variables if the system was honest? Just like when I paid off loans and debts score dropoed due to ampunt of credit. Youd think it would have went up due to less debt. Its a system to get the rich richer.😅😅

[@workshopmortgage]

Hi Laurie! Oh they're very much not BS. And I say this as a person who started working in mortgage lending in 1994, before credit scores were used in mortgage lending. The first credit reports I saw as I was learning the ropes as a lender didn't have credit scores on them at all. (They were also printed on a dot-matrix printer with tractor feed on the sides. I'm old. 😆) The reason I say they're not BS and I slowly came around to understanding why they're an important part of lenders credit decisions is that they WORK. With a high degree of accuracy they predict how likely someone is to default on a debt. Lenders need this information and can use it to make better lending decisions and to figure out the appropriate amount to charge. But the other thing to know is that this happens in "buckets". So let's take a group of people with a 600-620 credit score versus a group of people with a 700-720 credit score. A certain percent of both groups will make late payments or default on a debt. For mortgages, that percentage is really low across the board (people generally do what it takes to keep the roof over their head!), but the percent is higher in the 600-620 group than the 700-720 group. Now YOU know you're not going to default no matter what your credit score is. But if you want to get better terms on your loan, learning how to game the credit score system can help you move from one bucket to another. And by "keeping better statistical" company -- which is to say having a credit profile that looks more like people who rarely default instead of a profile that looks more like people who default more often -- you can save money on your mortgage (and other stuff). Not sure if that makes sense, but I hope it clarifies a little!