My friend Don Watts at Encompass Lending group shared some very important information about FICO scores and I wanted to offer this valuable information to you!
What to know about “Mortgage Rate Shopping.”
Looking for a mortgage? Auto or student loan may cause multiple lenders to request your credit report, even though you are only looking for one loan. To compensate for this, FICO, the scoring model used by lenders ignores mortgage, auto, and student loan inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won’t affect your score while you’re rate shopping. In addition, the FICO model also looks on your credit report for mortgage, auto, and student loan inquiries older than 30 days. If it finds some, it counts those inquiries that fall within a shopping period of 45 days as just one inquiry when determining your score. For FICO scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score.
For more information or if you need to apply for a mortgage here is Don’s contact information:
Don Watts – NMLS #348482
Office: 281-693–LEND (5363)
Apply Online: http://www.elgloans.com