Most know around here I'm in the final weeks of the mortgage process that started last Nov. Loan is in "processing" and given a closing date June 19.
In 2004 I needed some quick cash for various reasons, went to my bank and floated a note on my signature ( 25 year customer) for 10k, payment on that note was 222 monthly.
Years later, when things got better, I was in a position to pay it off, but advice given if the payment was no hardship,keep the line open and just let it ride paying the monthly installments.
Credit pulls during the mortgage process ( 4) showed the line open reporting positive info.
Fast forward to April 2015, the LAST payment comes due. I pay it, knowing it will ding my score, but there was no way out of it, and 2 weeks later I am HP by my LO, for 2 reasons. To clear the way for possible product change from conventional to FHA, and the clock is going to run out on Feb pull before closing anyway, so might as well get it over with. The HP says all is good, and only positive changes since the Feb pull, scores up, things looking good. Proved to be worthwhile HP.
At the disclosure meeting 2 weeks ago, my loan is finalized and the numbers and sent to "processing."
When the papework arrived in my box from bank with the "paid in full docs" I made copies. I was handed a copy of my recent CR obtained just prior to the disclosure meeting, I checked down to the line with the loan in question. It reported a 222 dollar balance with a 222 payment. "Well that ain't so anymore." I highlighted that line, sent a copy of paid in full doc, and scanned all that in for my LO and fired it off to her, showing her that line is no longer in the mix. Hopefully she undestood what I was trying to tell her.
She called me a couple hours later. She sounded like judge wapner on people's court when he said start of each hearing, "I have your documents and have read your complaint."
"Ok I have your docs, so Regions bank loan is paid off?"
"yeah"
"so why'd you do that?"
"Cause I HAD to, it was the LAST payment, unless ya want me to go 30 days late LOL. Lending people are too funny. "OK we want ya to pay down your DTI, but don't pay nuttin off" And I go "?????? you wanna explain that again?"
"Oh I see now. Ok I'm gonna send these docs to the UW, you did good on the documentation."
"you trained me well," Along with fico forum.
So this morning I got a fico alert on my IPhone, "information in your credit report has changed"
"dang this ain't gonna be good"
So I sign in and see under alerts a stunning 12 pt drop on Exp as the account reports in closed. I was thinkin it would be more like 4 or 5 but 12??
Luckily I have room to spare on my scores, but still I'm not a happy camper.
TU and EQ not reported yet, but maybe the carnage won't be so bloody. Not checked the mortgage scores to see what affect took place. Hopefully won't be as bad, but with credit score logic who knows.
