Why Mortgages Are Different

Most mortgage lenders still use old FICO models (2, 4, and 5), not the shiny new versions. Why? Because Fannie Mae and Freddie Mac require them, and lenders don’t want to risk loans being rejected by the secondary market.

When you apply, lenders pull a tri-merge report from Experian, Equifax, and TransUnion. They use the middle score, not the highest or lowest. Example: 742 (Experian), 690 (Equifax), 705 (TransUnion). Your mortgage score is 705.

🔟 Things Mortgage Borrowers Need to Know

1. Your Middle Score Matters – It’s never the highest or lowest; it’s the one in between.
2. Old Models Are Used – FICO 2, 4, and 5 weigh collections and medical debt more harshly than newer scores.
3. Small Collections Hurt Big – Even a $100 collection can lower your mortgage score dramatically.
4. All Three Bureaus Are Pulled – Don’t assume one strong bureau will carry you. Weakest bureau can drag you down.
5. Mortgage Scores Update Monthly – Unlike apps that refresh weekly, mortgage scores often lag until creditors report.
6. Loan Programs Have Minimum Scores – FHA: 580 (3.5% down). Conventional: 620. VA loans: flexible, but usually 620+.
7. Debt-to-Income Ratio Counts Too – Great score but too much debt = denial.
8. Rate Tiers Are Score-Based – 740+ usually gets the best rates; each 20-point drop can raise your APR.
9. Timing Matters – Pay down balances 30–60 days before applying to let scores update.
10. You Can See Your Mortgage Scores – MyFICO lets you purchase the actual versions lenders use.

🔟 Common Mistakes Mortgage Borrowers Make

1. Assuming Apps Show Mortgage Scores – They don’t. VantageScore ≠ FICO 2/4/5.
2. Paying Off Old Collections Too Late – May not update before underwriting.
3. Opening New Credit Before Closing – Even buying a fridge on credit can kill your loan.
4. Ignoring One Bureau – A weak Equifax or TransUnion can tank the middle score.
5. Not Preparing Months in Advance – Last-minute fixes rarely work.
6. Failing to Document Payments – Underwriters need proof, not just verbal claims.
7. Large Deposits Without Paper Trail – Unexplained cash can stall approval.
8. Maxing Out Credit Before Closing – Raises utilization, lowers score, threatens approval.
9. Closing Old Accounts – Shortens history, drops score.
10. Not Shopping Rates Within 45 Days – Multiple inquiries outside that window count separately.

Related Reads:

Why You Have More Than One Credit Score — And Which Ones Lenders Actually Use

Credit Scores for Car Buyers: What Dealers Really Look At

Credit Card Scores: Why Bankcard Models Matter More Than You Think

Alternative Credit Scores: Rent, Utilities, and UltraFICO

Final Word on Mortgage Scores

Mortgages use a different rulebook. It’s not about your “app score” — it’s about your middle, old-school FICO score. Even a few points can mean tens of thousands of dollars over a 30-year loan. Plan months ahead, clean up collections, and know what score your lender will actually see.