How do lenders pick which credit score to go with when 2 people are applying?

Ok.. so to clarify, the lender will take the LOWEST MID SCORE of ALL borrowers... meaning if you and your husband had your mom and dad cosign, then of the 4 borrower on the application (you, your husband, your mom, your dad), the lender will use the LOWEST MID SCORE of the 4 of you... This is the credit score that the lender will use as their minimum score and how they price the loan... so if you have 3 borrowers with 780 mid credit scores and the 4th borrower has a 580 mid score, then the lender will look at the loan as having a 580, since it is the lowest mid score of all 4 borrowers. Also, the biggest mistake you can do is to try to "Fix" your credit on your own... Folks who attempt to do their own credit repair will most always do more harm than good... because of the intricacies of credit repair, it's something best left to the professionals.. If you haven't already, you should contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders... By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Lenders will use the lowest mid score of all borrowers. The credit report will show 3 FICO scores for each borrower and the lowest mid score for either borrower is the one the loan approval and cost will be based on. ex: (Husband 650-678-699, Wife 699, 702, 705, - score used 678). It will not be based on who makes the most money.

Hi Lily, There are a couple of items to consider. First of all when there are co-borrowers on a loan the person with the lowest middle credit score will be used for determine the rate. The second thing that you mentioned was that you and your husband have some accounts that are totally separate. Texas is a community property state. If you decide to have one of you apply because of higher income or credit score. Note the spouse that applies will have the debs of the non-participating spouse counted in their debt load. This will impact the size of home you can afford. Overall probably the best thing is to go over your monthly debt obligations and income and we can help you determine how to spend the least amount of money for the greatest benefit to reach your goal. Sincerely,Henry J Daniels - Sr. Mortgage Banker & CMPSI Certified Mortgage Coach"Educating you to make the right financial choices for your family today and tomorrow" Direct/Text: (936) 228-1944 & Fax: (832) 217-3033Blog: WoodlandsMortgageBank.com

Lenders don't pick which score to use. Lenders pull all three credit reports (Trans Union, Equifax, and Experian). We then throw out the high score, throw out the low score, and base all underwriting on the middle score.

The lowest mid score of all borrowers will be used. If you can qualify with just your income alone, and you cannot pay down your combined accounts to below 25% then you should focus on paying just yours down below 25% but not to 0%. You want to keep a small balance to show that you can utilize your credit responsibly but not "max out" all of your accounts.