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Established Member
economan
Posts: 17
Registered: ‎04-14-2009

Need advice! Must raise fico 6 points for mortgage loan

Hi Gang,

 

I have been helped here before, so I return again. I applied for a moprtgage loan. I am approved, but have to pay an extra point for my mid-score being below 700 (TU=705, EQF=694, and EXP=688). This is a special loan program for teachers in california and beats the snot out of FHA. The loan is for $400k, so this point costs me an extra $4k.

 

I only have one cc with a balance (5100/11500) and have a total revolving util of 18%. I have stud loans, and no other debt. My credit scores are low due to three baddies:

 

Amex greeen card went pd. collections in 2004

HFC - 30 day in 5/07

ACS - 2 60 days in 6/07 and 7/07 (Not sure why they are both 60 and not one 30 and one 60)

 

I have tried to GW all three...no go. :smileysad:   

 

I have a 6 inquiries within one year (one UA that I am currently disputing).

 

I need  the money I have saved for a down payment and closing costs. BUT, what if I use $2k to pay down my sole cc below 30% util. Do you think this would be enough to get a 6 point jump??? I might be able to spare it, but it would be cutting it close.

 

Thanks to all for your help.

 

 

 

 

 

 

Established Contributor
Susyquk
Posts: 504
Registered: ‎03-27-2009

Re: Need advice! Must raise fico 6 points for mortgage loan

[ Edited ]

I sent you a pm with a contact at ACS

 

Also the UTL on that one card is at 44%, if you can get it below 30% you may see the jump you need (they say about 10 points for every 10% reduction)

 

I realize that means taking nearly $3000 but it's still cheaper than paying for the point :smileyvery-happy:

Message Edited by Susyquk on 07-24-2009 08:27 PM
Established Member
economan
Posts: 17
Registered: ‎04-14-2009

Re: Need advice! Must raise fico 6 points for mortgage loan

thanks for the reply. I just realized that the student loan is through aes not acs. don't think they're related??? bummer. but thanks.
Established Contributor
Susyquk
Posts: 504
Registered: ‎03-27-2009

Re: Need advice! Must raise fico 6 points for mortgage loan

Not related but I also sent you the CEO of aes' email addy.
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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Need advice! Must raise fico 6 points for mortgage loan

OP, what are the negatives on screen 2 of your most recent EQ and TU FICO reports? This is where they show the scale with the negatives on the left in red and the positives on the right in green.

They are listed in order of impact on your scores, so the first-listed is hurting the most, etc. If "credit usage" (revolving util) is up near the top, getting your util down might do the trick.

For maximum score tweaking, aim for all CC's reporting $0, except for one reporting $10-20. (Don't forget to pay it off as soon as it reports.)

Again, this is if util is hurting you.

Check over on the Credit Cards board for more info on the timing of your payments for maximum impact, etc.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Member
economan
Posts: 17
Registered: ‎04-14-2009

Re: Need advice! Must raise fico 6 points for mortgage loan

Thanks for the email addy.

 

On the mortgage app credit report (from credco) it says:

 

EFX BEACON 5.0  694

Factor 00039, 00013, 00014, 00016

 00039 Serious Delinq

 00013 Time Since Serious too Recent or Unknown

 00014 Lenght of Time Accts Have been Established

 00016 Too Many Consumer Finance Company Accts

 

on myFICO it says for hurting my score:

1. Serious Delinq

2. Recent Missed Pmt.

3. Short Acct History

 

I am not sure why the recent missed pmt is hurting me as it has been almost two years???

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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Need advice! Must raise fico 6 points for mortgage loan


economan wrote:

Thanks for the email addy.

 

On the mortgage app credit report (from credco) it says:

 

EFX BEACON 5.0  694

Factor 00039, 00013, 00014, 00016

 00039 Serious Delinq

 00013 Time Since Serious too Recent or Unknown

 00014 Lenght of Time Accts Have been Established

 00016 Too Many Consumer Finance Company Accts

 

on myFICO it says for hurting my score:

1. Serious Delinq

2. Recent Missed Pmt.

3. Short Acct History

 

I am not sure why the recent missed pmt is hurting me as it has been almost two years???



These are actually the same negatives. Because of your current score range, myFICO only gives you 3 negatives. So:

 00039 Serious Delinq = Serious delinq (duh)

 00013 Time Since Serious too Recent or Unknown = Recent Missed Payment

 00014 Lenght of Time Accts Have been Established = Short Account History

 00016 Too Many Consumer Finance Company Accts (this would be on your myFICO report if your score was lower)

 

Even though the recent isn't particularly recent, it just means that that late is affecting your scores more than your short account history.

 

Looking at this, I would say that your real problems are the serious derogs (the collections and the 60's) and the semi-recent late (the second 60.) If a nearly-two-year-old late has more impact than short history, then this tells me the short history isn't a very big factor.

 

One possibility is that you will get a score improvement in August from the 7/2007 60 going over two years. Supposedly, 60's start counting like 30's after 2 years. So maaaaaaybe you'll see something from that in August.

 

Since util isn't listed, I don't know if reducing that would help your score, but it's always worth a try.

 

In the meantime, if you have one or more CC's with relatively small balances that you can pay off before the statements drop, you might eke something out there as well, as there is usually some score benefit from having fewer accounts with balances.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Contributor
cobaltnv
Posts: 640
Registered: ‎09-02-2008

Re: Need advice! Must raise fico 6 points for mortgage loan

Economan,

  You mentioned only one credit card with a balance. I assume you have other cards. If you use them during the month make sure you pay them off in full before your statement date. This will ensure than only the card with a balance actually reports a balance (check your reports to see if any of your other cards reported a balance). If other cards are reporting you could probably get the 6pts you need by having only one report. However, to be safe I would also pay down that one card as much as you can. 

TU 810: EQ 813: EX 814 (9/16/09--Loan officer pull)

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Established Contributor
cobaltnv
Posts: 640
Registered: ‎09-02-2008

Re: Need advice! Must raise fico 6 points for mortgage loan

Economan,

   One additional idea. Which ccc is the balance with? You might be able to have them raise your credit limit. I know this is difficult in these times, but it is possible.

Good luck 

TU 810: EQ 813: EX 814 (9/16/09--Loan officer pull)

Helpful Threads
Frequently Requested Threads
Understanding your Fico Score
Established Member
economan
Posts: 17
Registered: ‎04-14-2009

Re: Need advice! Must raise fico 6 points for mortgage loan

Thanks again for the responses. I don't use the other 5 cc's (except every few months to buy a tank of gas or groceries just to keep them active). They reported 0 balances on the last CR.The only CC with the balance is Citi and they just gave me the CLI last month (probably hard to talk them into another one???) Don't really want to rock the boat and have them reduce the CL. I could pay off $1k and get the balance under 40% (but CC util was my first positive on myFICO). 

 

I guess I will have to wait until August to see if EFX treats the 60Day from 7/07 as a 30Day.How long do you think it will take for a result to show? 

 

Also, do you think closing some of the minor recent consumer accts would help (as per the fourth issue). Hauling says that this probably is not a big issue since myFICO didn't report it as a neg. 

 

Finally, I could probably get on one cc as an AU, but I am not sure this will increase my AAoA by very much (since I have so many -- 19 revolving). 


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