CC balances - Closing Costs - Credit Scores - Request for your Adcice

[StartingOver10]

Remember utilization is huge for FICO scoring - 30% of your score.

Also the algorium, as best as we can tell, measures utilization individually for each account and across all accounts. That is why you want to have as many zero as possible. If it isn't possible, then make sure (if you can do so) that the individual cards have balances less than 30% and go from there. You are already in a good position, but you can make your position much better when you get your score to min 720.

[srn]

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@StartingOver10 wrote:

Remember utilization is huge for FICO scoring - 30% of your score.

Also the algorium, as best as we can tell, measures utilization individually for each account and across all accounts. That is why you want to have as many zero as possible. If it isn't possible, then make sure (if you can do so) that the individual cards have balances less than 30% and go from there. You are already in a good position, but you can make your position much better when you get your score to min 720.

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Based on what you said, i think of doing the following:

1) Bring down the 2 cards with >40 % util to under 30%

2) Bring the 18 % util card to 0 %

3) All others are under 30 % now, so just pay a little over minimum payments

[srn]

One more question i always forget to ask:

Worst case, in the last minute, say july (my closing is in August), can i borrow money from a friend if required. (Gift check of ~$2000).

[StartingOver10]

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@srn wrote:

One more question i always forget to ask:

Worst case, in the last minute, say july (my closing is in August), can i borrow money from a friend if required. (Gift check of ~$2000).

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That is a loan officer question - ask your LO specifically if you can receive a GIFT (you can't borrow any part of your down payment or closing costs).  You would have to show gift paperwork too.

[Lemmus]

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@srn wrote:

One more question i always forget to ask:

Worst case, in the last minute, say july (my closing is in August), can i borrow money from a friend if required. (Gift check of ~$2000).

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...the key is "borrow" vs "gift" ...if you borrow at the last minute, you increase your debt and could throw everything back into underwriting again (assuming you survive your LO's attempt to strangle you) ...otoh, "gifts" acompanied by letters stating it is a GIFT do not increase your debt and are common financial transactions in mortgages.

...that said, your LO isn't going to be thrilled by last minute "gifts" either ...you should get that out up front so it goes through UW ...then, if you don't need it to close, don't take it ...but if you do, its already been accounted for ...hth

[srn]

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@StartingOver10 wrote:

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@srn wrote:

One more question i always forget to ask:

Worst case, in the last minute, say july (my closing is in August), can i borrow money from a friend if required. (Gift check of ~$2000).

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That is a loan officer question - ask your LO specifically if you can receive a GIFT (you can't borrow any part of your down payment or closing costs).  You would have to show gift paperwork too.

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Thanks. That's what i thought. I will forget about it. I don't want to risk, rather i pay more PMI.