Do they simply average your credit scores to figure out what kind of interest rate you will get? Or do they put more emphasis on the higher score?
I have heard people say both.
2007-03-07 05:09:30 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The simple answer would be they average them. But in the real world it doesnt always work like that. Mortgage brokers work on commision and want to make the sale as much as you want the house.
If one of the persons applying has a great score and the other has a horrible score and they would put more empahsis on the higher score if it meant that it was only way to qualify you for the loan.
2007-03-07 05:13:25 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I've never, ever seen a program that averages borrower and coborrower scores. I've seen programs that use the coborrower's middle score when the coborrower makes a certain amount of money, and I've seen lenders go with the lower middle score between borrower and coborrower, but never an average. Lenders look at the primary borrower's middle score of a tri-merge credit report. The coborrower's score is generally disregarded. The coborrower is there to provide additional household income, so the household qualifies for more money. And more goes into the interest rate than just score. You have to look at loan-to-value, debt ratio, size of loan, and purpose of loan as well.
2007-03-07 05:48:46 · answer #2 · answered by togashiyokuni2001 6 · 1⤊ 0⤋
The higher your credit score the lower your interest rate will be.
2007-03-07 05:15:49 · answer #3 · answered by devilgal031948 4 · 0⤊ 1⤋
most situations will take the middle score of each borrower.
2007-03-07 06:05:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋