Do Mortgage Companies Average Your 3 Credit Scores or Use the Middle?

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A great question on credit scores came to us through Twitter recently. "thecomfycook" reached out to us and said, "I cannot seem to find a straight answer to this anywhere: do mortgage co's average your 3 (credit) scores, or use the middle #?" While we answered it right away, we thought it made for a great subject for our blog. Credit questions often plague home buyers.

The short answer for AmeriFirst is that we use the middle number. Our loan officers pull a trimerge credit report from the 3 main credit bureaus (Experian, Transunion and Equifax) and use the middle number. For instance if your numbers are 625, 640 and 700 your credit score for us is 640. We do not average the scores.

Get another look at this explanation with Battle Creek, Michigan mortgage consultant Colleen Maire in the video below. Or you can click here: Understanding Credit Reports

Another great question we've seen is "What's a good credit score for a first time home buyer?" While most mortgage options do not have a minimum credit score, lenders often do. Because mortgages are a financial investment by banks, lenders and other investor groups, they must be a managed risk. One way to manage this financial risk is to make sure borrowers can pay back the loan. Credit scores are one indicator of the kind of borrower you are. Bottom line, you'll need a credit score in the mid 600-range to get a mortgage in today's housing market.

Get more credit information for mortgage loans with the free guide "Get Mortgage-Ready Credit" at the button below. From tips to improving credit, to mistakes to avoid during the mortgage loan process, your questions will be answered here.

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