01-25-2013 10:52 AM
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,
01-25-2013 11:05 AM - edited 01-25-2013 05:09 PM
Your scores will matter for rates with a conventional loan.
These are just examples, have nothing to do with the present rates available.
01-25-2013 11:31 AM
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.
01-25-2013 11:36 AM
01-25-2013 12:10 PM
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.
01-26-2013 10:00 AM
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! :-)
Thank you, I hope you have a successful closing. You will be in your new house in no time!
01-26-2013 01:50 PM
01-26-2013 02:02 PM
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.
01-26-2013 02:08 PM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.