Mortgage loan officers hear daily from consumers they don’t want their credit score pulled because they’re worried about their credit score dropping. Unfortunately, the internet is full of information providing an over abundance of information to consumers yet does a poor job of educating people. Most articles you will see online are nothing more than click bait for advertisers.

Most information out there points to applying for a mortgage may hurt your credit score. Here is the reality applying for a mortgage for a refinance can have a dramatic impact on your net bottom line with lowering your interest rate, dropping private monthly mortgage insurance or paying off debt or doing home improvement in nearly every refinance situation the gain of the refinance is greater than any remote chance of your credit score dropping at application stage. Same goes for buying a house- do you really want to forgo a life-changing event that could dramatically impact your family’s financial future in exchange for what probably will not happen with your credit score anyway?

Mortgage tip: If there is a disparity between what your credit score says on the mortgage credit report and what you think your credit score is it also might be to utilization of credit. If you’re carrying high credit card balances more than 30% of the total allowable limit it’s likely that your credit score could be different from one report to another.

In nearly every instance apart from jumbo mortgages that generally require a 680-credit score or higher even if your credit score is different a few notches it is not going to dramatically change your interest rate or your fees one way or another.

Following requirements to remember:

• 580 score or higher for FHA- some lenders will grant exception with less than 580 score
• 620 or higher for Conventional
• 680 or higher for Jumbo (any amount for the max loan limit in the area in which the property is located)

As for credit accuracy the mortgage credit report is the granddaddy of all credit reports. Banks will not lend you money based on report credit monitoring service like Credit Karma. The financial services (bank version) credit report is what determine whether you qualify or not.

If you’re looking for a mortgage and need some credit advice begin today today with a no cost quote.