BIGGEST LIE WHEN IT COMES TO CREDIT

This is the biggest lie when it comes to credit scores. What if I told you your credit score isn’t what you think it is? I’ll explain. Typically, when you’re using a free app to track your credit score, like Credit Karma, they use what’s called a vantage score model. But when it comes to getting approved for a home loan, banks use a FICO score model from the three credit bureaus, which is very different. When looking at the difference between these two scores, at times I’ve seen a pretty big gap. And it’s been enough that it changes the loan program that we were able to use, and even worse, not qualifying at all for a down payment assistance program with a small window of opportunity. That’s when relying on a vantage score really becomes a disadvantage. And I know that everyone talks about not running your credit check unnecessarily. But if you want to know where you really stand and be prepared, working with a lender that can do a soft credit check is the way to go. Once I complete a soft credit check, I discuss where you stand and what you might need to work on for various programs and scenarios. Because remember, it’s better to be prepared for an opportunity and not have one, than to have an opportunity and not be prepared.