Applying for loans and mortgages can be confusing and stressful. Finding a perfect home for you and your family can be a triumphant moment, and waiting to hear back about a loan application can be the most stressful part of the entire process. While experienced agents like Christopher Lechner can help you navigate the confusing field of loans and mortgages, it’s essential that you know how certain things can affect your eligibility for a loan before you start the process. One of the most significant factors is your TRI merge FICO score.
What is a TRI merge FICO score?
When you’re in the process of getting approved for a loan, you may hear from your lender that your TRI merge score needs to be reviewed. Three major credit bureaus provide lenders with separate credit scores (Experian, TransUnion, and Equifax.) Your TRI merge score is a combination of these three scores, which, together, give a detailed and easy-to-read complete credit history to your lender. The reason why there are three different credit scores is that each bureau is a for-profit business and is not required to share information with one another. While all your credit information should be on each report, and all three agencies should have your full credit history, that isn’t always the case. Therefore, a TRI merge credit report allows your lender to get a comprehensive look at your complete credit history with as few gaps as possible.
How does a TRI merge FICO score affect my mortgage?
Your TRI merge score primarily affects what your mortgage rate is. Your mortgage rate is the rate of interest charged by whomever your lender is. Mortgage rates are measured in eighths, meaning that there is a large variance in what your mortgage rate percentage can be. There are several factors that determine your mortgage rate. A few things that are taken into consideration are your down payment, loan amount, and the economic environment in general. However, your cumulative credit score is the most significant part that comes into play by far. What it all boils down to is that the lower your credit score is right now, the higher your interest rate will be. As a result, it makes sense for the lender to use a TRI merge credit score to get the best understanding of your full credit situation.
The best thing for you to do when preparing for a mortgage application is to check all three of your available credit scores about six months before applying. Doing so gives you ample time to make any corrections that you can and raise your TRI merge score as high as possible, making your eventual mortgage rate low.
Questions About Credit Scores and Mortgages? Call Christopher Lechner today.
Christopher Lechner is a certified HAFA specialist that will work tirelessly with you on any questions when it comes to mortgage qualification. He is an accredited buyers representative that has been active in the Los Angeles area for years. Call Christopher Lechner today at (562) 221-0055 to speak with a motivated, professional broker that will work for you!
Published on 2017-12-26 16:15:57