Frustrated! AU & Mortgage loan -- advice needed.

[Anonymous]

Grrr. So I got all excited the other day because our LO emailed and said that my husband and my scores were high enough for a loan. Fast foward 24 hours and she "mispoke". Talk about a let down! So now she wants me to add my hubby as an AU to my CC's. When I told her he already was on several of my cards she said that her screen did not show them at all. I verified with each card company that, yes, he was indeed an AU and that they were reporting as such to the CRA's. I went ahead and added him to the last card he wasn't on anyways.

I am now so confused because I see on here that some lenders disregard AU's anyways. I don't think this is the complete problem since he has another card with Khols that is just in his name that is also not listed on the report she pulled. So as of now she is missing 3 lines of credit for him -- 2 AU, 1 Individual. What gives? Can ya'll think of a reason why his report is missing so many tradelines, they all show on myFICO and Credit Karma.

Here is a profile of Him:

Cap 1 -- Individual

Cap 1 -- AU

Chase -- AU

USAA -- AU

Lowes -- AU

Cap 1 car loan -- joint

Khols -- Individual

His midscore is 570 (FICO 8 - EQ 640, TU 624, EX 634) and she will do a VA loan for us when he hits over 600.

My scores are in the mid 600's (FICO 8 EQ 649, TU 661, EX 673)

His score is low because he is a disabled vet and two years ago when everything was in his name and we were fighting the VA for disability (thanks so much VA) we wracked up several Medical Collections totaling about about 1600 over 7 accounts. He also was late on his NFCU card (perfect payments till this point but some 120 lates) but we caught that up even though the account is now closed.

I don't think i should expect his scores to go up 30 points from adding an AU (my USAA card is not yet 2 years old, no lates, $1000 limit). I'm thinking we need to PFD as many of these medical collections as possible. Hubby is wondering if the LO does another soft pull this "glitch" might be corrected and his scores go up. Do ya'll think that's possible.

This is all so frustrating! Thanks in advance to everyone

[StartingOver10]

Have you pulled his credit report from www.annualcreditreport.com to see what is showing up?  Naturally the scores from here and from Credit Karma are not going to reflect what a mortgage person pulls because they use different algoriums for mortgage scores.Take a look at the stickies.

Is your loan officer with a correspondent lender that underwrites and funds their own mortgages or is she just a broker that ships the loan package out to lenders?

[Anonymous]

Yeah we pulled his annual credit report and all the stuff I mentioned was on there too -- collections and revolving accounts.

The LO is with a bank that underwrites and funds. She isn't a mortgage broker.

[StartingOver10]

the big box banks are very conservative now. You would be better off with either a small community bank that services their own loans or a correspondent lender that only does mortgages.

[Anonymous]

Also, I knew we were looking at FICO 8 scores here which would be different than the bank but until the bank tells you its anyone's best guess what the spread will be. I'm not suprised at the score. I'm more wondering what is going on with her report since she is missing so many trade lines of various types. That seems odd.

[StartingOver10]

One more thing:  the loan officer you deal with is critical to the process. It is extremely important that the LO have extensive knowledge and experience with your situation. It is a little scary that the LO thought you were okay but didn't check with underwriting right away so she didn't give you accurate info in the beginning. Find someone more knowledgeable.

[Anonymous]

We are actually going with a smaller local bank so we should be avoiding some of the pitfalls of a big box bank.

Logically I am thinking that if she is telling me to add him as an AU her system shouldn't be disregarding AU's -- we can't be the first loan she has done with AU accounts.

[Anonymous]

See that is what my husband and I are wondering -- just how experienced is she? Seems like she should be checking more closely before spouting stuff off!