2014 Qualified Mortgage Rules

With interest rates rising and the new 2014 Qualified Mortgage rules credit scores are more important than ever.

Here are some tips for potential mortgage applicants about reviewing credit scores:

  • Check your credit and scores well in advance of applying for a loan or looking for a property at www.myfico.com. Make sure to check at least 6 months to a year before shopping for a mortgage.
  • You should purchase your standard Trans Union, Experian, and Equifax Fico scores.
  • Usually banks take the middle of the three FICO scores. For example, if you had scores of: Trans Union Fico 755, Equifax Fico 730, and Trans Union Fico 710, the middle score would be a 730.
  • If you purchase a credit score online make sure it is a FICO score. The FICO Score ranges from 300-850 points and it is the closest to the mortgage FICO score banks use. A score above a 740 is considered excellent.
  • There are many scores sold online that make it very confusing for consumers. For example, there are Vantage scores which range from 501-990 with letter grades A-F, Plus Scores ranging from 330-830, Equifax scores range from 280-850, and many others. These scores can vary from a FICO score by 10-200 points. This can give consumers a false sense of what their mortgage score is.