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Can loan terms improve if your credit scores rise after preapproval?

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Anonymous
Not applicable

Can loan terms improve if your credit scores rise after preapproval?

Couldn't find an answer after searching...

 

If I get pre-approvals from various lenders based on my current credit score, is there an opportunity to get better loans if my credit score jumped up over the next 90 days? 

 

I ask because my middle score is currently 725 but I have taken some actions which may or may not bring it up to 740ish.  (Simulator actually says 750)  Regardless of how accurate this may be, I'm curious since everyone is afraid of their scores dropping between preapproval and closing, but I've never heard of people getting a higher credit score and benefitting from it... 

 

Thanks!

Message 1 of 4
3 REPLIES 3
ezdriver
Senior Contributor

Re: Can loan terms improve if your credit scores rise after preapproval?

Conventional mortgage loan rates and mortage insurance premiums are heavily affected by scores. A 720 is a good entry point into the realm of best rates and PI premiums.

Message 2 of 4
Revelate
Moderator Emeritus

Re: Can loan terms improve if your credit scores rise after preapproval?

Generally speaking once you lock a rate you're stuck with it; short of abandoning the application and restarting the loan process again with the same lender or a different one.  That is not the end of the world beyond potentially irritating your lender as people do go as far as to switch lenders in mid stream and still close if the time pressure is on a takeaway will move at light speed worst case.

 

It's been done before, will be done again.  You can also not lock the rate too, but here generally people get as pretty as possible credit wise before they make the application.  Your case is admittedly a little abnormal for the forum heh.




        
Message 3 of 4
Anonymous
Not applicable

Re: Can loan terms improve if your credit scores rise after preapproval?

ok, thanks for the advice!

 

Yes, it's a little strange timing-wise.  I had expected to really wait to start the process until the end of this year but there is a house we are feeling the itch to offer on.  I just figure if the preapproval is for my current scores and lets say that the house isn't THE ONE, then when we do find 'another' THE ONE (haha) my scores may have crossed into the next higher bracket. 

Message 4 of 4
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