@fantombeats wrote:
So here is my story. I have been in the process of buying a home since September of last year. We were pre approved through our lender and last week were were about two weeks away from closing. This is not just a house we were buying but it's a house that we built. I got a call saying that the underwriter denied my loan because I needed a credit score of 640 and apperantly I am at a 635. In the beggining of this process when I was first pre-approved, my lender told me I opnly needed a 620 to get approved for a USDA loan. Well here is the big kicker. Monday, thinking everything was good to go, I decided to start applying for credit cards so I can really work on my credit. To my suprised I was approved. I was approved for Lowes-$300, Home depot - $500, Macys-$300 and Kays-$800. This time last year my credit score was a 530 and I have never been able to get approved. Now I am really afraid that getting these credit cards are going to hurt my on this mortgage. I am thinking of maybe canceling them all because I checked my Equifax score this morning and it has dropped 20 points. Any help on what I should do would be appreciated. My lender did tell me that as long as I paid the only medical bill that was on my credit, it would raise my score 38 points. I did pay it, $500. Hopeing that helps.
Was the medical bill a Collection? Paying it isn't going to increase your score. Getting a PFD may have increased your score, you might try to GW the collection agency or talk to the medical provider to see if they can pull back the debt since you satisfied it. (Depending upon whom you paid).
Unfortunately, you now have 4 new inquiries, this is not good. You have to wait until you close and are funded before you start applying for new credit lines, you shouldn't do this before without directly consulting with your loan officer and getting their input. Cancelling them will do you absolutely no good at this point, you have the inquiries now. I would get in touch with your lender ASAP and get their input but the deal may not be salvagable at this point. I would get yourself mentally prepared for putting your home ownership dreams on hold for a few months while your score hopefully rebounds.
When getting a mortgage you basically have to keep your nose clean or you may trash the entire deal, this means no inquiries, no new collections, no touching existing collections unless asked by the underwriter, no new cars, loans, lines of credit, no nothing. You can put all of those good things that you want on hold until after you close AND the loan is funded.
