Mortgage Loans

[blbarnes]

I needed to have a FICO score of 680 in order to apply for a conventional loan,which I recently reached. Is there any advantages with having a score over 700 for a conventional loan. If so, I am going to try to wait for my scores to increase some more before applying for the loan.

I took out a student loan this month to help pay for an advance degree. When the loan is reported to the credit bureau with it affect my credit score. I hope it don't cause my scores to drop.

Thanks in advance for the reponse,

Brandy

[JM-AM]

Your scores will matter for rates with a conventional loan.

As example

680- 4.5%
700- 4.25%
720- 4.0%

These are just examples, have nothing to do with the present rates available.

[violetsmom]

I believe a score over 700 will get you a more favorable rate than a 680.  However I would also expect your score to drop a bit from adding in a new loan.

[MovingForward_2012]

Many folks here, including myself think that your chances of getting all the way through the mortgage process are improved if your current score contains some margin up against the requirement. This because the lender will typically run another credit check to make sure you still qualify right before closing. Little things such as slighter higher utilization on your cards, the 5-7 pt drop from the inquiry to get preapproved, and a second drop for a possible hard inquiry for the final pre-closing credit check can cause a borderline score to drop below the requirement and the loan is either delayed or denied.. The pre-closing credit check isn't always a hard inquiry though. If you are closing in a short timeframe after preapproval, they may not rerun your credit as that isn't enough time for your credit report to significantly change. In my case, I got preapproval and went on contract on 1/5 and I have a tentative closing date scheduled for 1/30. My LO said that they are not going to run my credit again before closing. My score hasn't changed one pt since preapproval as I have been micromanaging my credit. LOL! So if they did rerun it, I wouldn't be concerned. My mid fico score is 703 and my lender requires a 660. So I think getting your score to 700 before you apply is a good idea. The easiest way to score some additional pts is to pay one credit card down to less than 10% and report a zero balance on the other cards.

Wishing you the best on your new home purchase! :-)

[tooleman694]

I had a situation like this, new accounts added after the first pull. They had to do a rapid rescore and yes I lost points.

Got them all back now though. Took a couple months.

[blbarnes]

Thank you, I understand what you are saying. The higher the credit score the lower the interest rate.

[blbarnes]

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MovingForward_2012 wrote:
Many folks here, including myself think that your chances of getting all the way through the mortgage process are improved if your current score contains some margin up against the requirement. This because the lender will typically run another credit check to make sure you still qualify right before closing. Little things such as slighter higher utilization on your cards, the 5-7 pt drop from the inquiry to get preapproved, and a second drop for a possible hard inquiry for the final pre-closing credit check can cause a borderline score to drop below the requirement and the loan is either delayed or denied.. The pre-closing credit check isn't always a hard inquiry though. If you are closing in a short timeframe after preapproval, they may not rerun your credit as that isn't enough time for your credit report to significantly change. In my case, I got preapproval and went on contract on 1/5 and I have a tentative closing date scheduled for 1/30. My LO said that they are not going to run my credit again before closing. My score hasn't changed one pt since preapproval as I have been micromanaging my credit. LOL! So if they did rerun it, I wouldn't be concerned. My mid fico score is 703 and my lender requires a 660. So I think getting your score to 700 before you apply is a good idea. The easiest way to score some additional pts is to pay one credit card down to less than 10% and report a zero balance on the other cards.

Wishing you the best on your new home purchase! :-)

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 Thank you, I hope you have a successful closing. You will be in your new house in no time!

[MovingForward_2012]

I hope so. I had to satisfy 13 conditions with my loan approval. My underwriter came back yesterday with 7 more conditions I had to satisfy. 2 of those conditions I can't satisfy yet because I haven't received my 401K check in the mail even though it was sent out on Wed. So I stayed up again all night to satisfy the 5 conditions I could. Went to bed at 4:30 Friday morn and went to bed at 7:00 am this morning. When I woke up at noon, I had received an email from my LO saying my file was back in review and that I would receive another email shortly, which was same thing that happened yesterday and the follow up email had more conditions to satisfy. One of the new conditions was related to the attached appraisal in the email. It said that the house appraised for $348,000 and the house price is $347,900, so I am assuming that's good? I had to sign an acknowledge form and fax that back to her. I really hope today's news is better news.

[JM-AM]

You are coming down to the Home stretch....

Since you are pushing for end of month closing, you should know something soon. Most closing, not written in stone depends how busy they are, take about 48 hours to schedule on average.

[MovingForward_2012]

Thanks JM-AM! I sure hope so because my landlord is getting hostile. I can't wait to leave this place forever!

I'm worried about exactly what you said. My LO said we could close on the same day as the day we get clear to close. I hoping that is what happens because they are aware of the situation I am dealing with and expedited the loan so I hope they will expedite closing too but I don't know.