Lending
Credit Scores and Your Mortgage in the Sacramento Region
How mortgage lenders read your scores, the newer score models, and how to fix report errors.
Talk to Maggie directly: cell (916) 549-3131 (text or call) · maggie@loveyoursurroundings.coMaggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307
Why does your credit score matter so much for a mortgage?
A credit score is a prediction of how likely you are to repay. The CFPB says (page last reviewed September 2, 2026) lenders use scores to decide whether to offer credit and on what terms. For a mortgage, your score can affect which loan types fit and the pricing a lender offers you.
The CFPB also reminds you that you don't have just one credit score. Your number depends on the scoring model, the credit bureau's data and even the day it was figured. That is why the score in your banking app may not match the one a mortgage lender sees.
What is a tri-merge report, and why does the middle score matter?
Most mortgage lenders pull a combined report from the three nationwide credit bureaus: Equifax, Experian and TransUnion. You'll hear it called a tri-merge. Each bureau can give a different score.
Fannie Mae's Selling Guide (topic B3-5.1-02, dated April 22, 2026) explains how the lender picks one number:
- With three scores, the lender uses the middle one. For example only: scores of 700, 680 and 720 give a middle score of 700.
- With two scores, the lender uses the lower one.
- With more than one borrower, the lender finds each person's score, then uses the lowest of those for the loan.
Government loans like FHA and VA follow their own agency rules, and lenders can add their own requirements. We check the rules for each loan type you're comparing.
What changed with the newer credit score models?
For years, conventional loans sold to Fannie Mae and Freddie Mac relied on an older model called Classic FICO. The Federal Housing Finance Agency (FHFA) has since approved two newer models: VantageScore 4.0 and FICO 10T.
FHFA's credit score page (last updated October 2, 2026) says:
- VantageScore 4.0 has been open to all approved lenders since September 9, 2026, with no prior written approval needed.
- Classic FICO is still approved, and no retirement date has been announced.
- FICO 10T is not yet eligible for loan delivery.
- Adding VantageScore 4.0 does not change the current credit report requirements, which still use the tri-merge.
- Lenders must use the same score model for every borrower on a given loan.
What this means for you: different lenders may score the same file with different models. That's one more reason to compare. Maggie wrote more about it in New Credit Score Models for Mortgages in California.
How do you check your credit reports for free?
The FTC says (page dated June 2026) each of the three bureaus must give you a free report every 12 months when you ask. Each bureau also offers free weekly reports, a program the FTC says has been permanently extended.
The only site authorized for the free reports is AnnualCreditReport.com. You can also call 1-877-322-8228. Checking your own credit does not affect your scores, according to the CFPB.
Look for accounts you don't recognize, late payments you know were on time, balances that look wrong and old addresses that aren't yours. Pull all three reports, since each bureau can hold different information.
How do you fix an error on your credit report?
The CFPB lays out the steps (page last reviewed September 2, 2026):
- Dispute it with the credit bureau that shows the error. Explain in writing what is wrong and why. Include copies, never originals, of anything that supports you.
- Dispute it with the company that reported it, such as the bank or card company. The CFPB says these companies generally must investigate and respond within 30 days of getting your dispute.
- Follow the results. If the information is wrong or can't be verified, it must be corrected or removed. If it's found accurate, you can ask the bureau to add a statement of your dispute to your file.
Certified mail with a return receipt gives you proof of when your letter arrived. If the error comes from identity theft, the CFPB points you to IdentityTheft.gov.
Should you pay a credit repair company?
Usually you don't need one. The FTC says (consumer alert dated December 29, 2025) that most of what a credit repair company offers, you can do yourself for little or no cost. It also warns that no one can legally remove accurate, current information from your report.
The FTC lists warning signs: asking for payment before doing any work, telling you not to contact the bureaus yourself, or pushing you to dispute things you know are true. Its advice is simple. Pay your bills on time, and keep doing it.
What is a rapid rescore?
When you're in the middle of a loan and a correction or a paid-down balance would change your score, some lenders can ask a credit reporting service to update your file faster than the normal monthly cycle. This is often called a rapid rescore. It's something a lender orders, and it only works with proof of a real change, like a letter showing a balance was paid or an error was fixed.
It can't remove accurate information, and not every situation calls for it. If your score sits just below a level that matters for your loan, ask us whether paying down a card and rescoring is worth it. We'll show you the trade-off before you spend the money.
Can you shop several lenders without hurting your score?
Yes, within a window. The CFPB says (page last reviewed August 28, 2026) multiple credit checks from mortgage lenders within 45 days are recorded on your credit report as a single inquiry. It adds that even after that window, the effect of another check is small and shopping around is usually still worth it.
That's good news, because comparing offers is how you get a fair deal. As a mortgage broker, Maggie compares a network of approved lenders for you. Avoid applying for other kinds of credit, like a car loan, during the same stretch.
How do you start with your credit in good shape?
Pull your three free reports, fix anything that's wrong and keep every payment on time. Then fill out the loan options form or call Maggie's cell at (916) 549-3131. We'll read your report with you and explain which loans fit, such as conventional, FHA or VA.
Next, read how debt-to-income works and how to get preapproved.
Frequently Asked Questions
Which credit score does a mortgage lender use?
For conventional loans, Fannie Mae's guide says the lender uses your middle score when it has three, or the lower score when it has two. With more than one borrower, the lowest of the borrowers' scores is used for the loan.
Can lenders use VantageScore 4.0 now?
Yes, for loans sold to Fannie Mae and Freddie Mac. FHFA says VantageScore 4.0 has been open to all approved lenders since September 9, 2026. Classic FICO is still approved too.
Is FICO 10T being used for mortgages yet?
Not yet for loans delivered to Fannie Mae and Freddie Mac. FHFA's credit score page, last updated October 2, 2026, says FICO 10T is not currently eligible for delivery.
Where can I get my credit reports for free?
At AnnualCreditReport.com or by calling 1-877-322-8228. The FTC says each bureau offers free weekly reports, and checking your own credit doesn't affect your scores.
How long does a credit report dispute take?
The CFPB says the company that reported the information generally must investigate and respond within 30 days of getting your dispute. Start early so it's settled before you're in contract.
Will paying off a collection raise my score right away?
It depends on the scoring model and the account. Ask before you pay anything off in the middle of a loan, so you know how the lender will treat it and whether a rescore makes sense.
Talk to Maggie directly: cell (916) 549-3131 (text or call) · maggie@loveyoursurroundings.coMaggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307
Loans are arranged through Maggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307. This is not a commitment to lend. All loans subject to credit approval and property qualification. Equal Housing Lender.
More in how mortgages work
Ready to make your move with Surroundings?