HELP! Closing on a house w/issues

Anonymous · ‎04-26-2017

Hello everyone,

This is my first time posting here and I am desperate for help, so please go easy on me!

We opened our escrow on a FHA loan in late January (new build) and they obviously pulled my credit then, all good.

Fast forward to now, I did not realize until early this month that they would be pulling it again before we close (set for 5/24). So I went into a panic mode because somehow in the last 3 months my middle score had dropped just below the FHA threshold.

So I began working with a credit counselor and she helped remove old medical collections as of 4/9. My score on Privacy Guard went up but when I checked on Credit Check Total, they had dropped about 50 points!!! And one score dropped on Credit Karma as well. My credit counselor said everything should "refresh" on the 5th and be all good but I am freaking out.

So now I don't know which to believe, if any, since these are evidently not the models the mortgage companies use.

I don't know the exact date they will pull my credit again but I am assuming within a week before we are set to close? Can anyone help me!1

Anonymous · ‎04-26-2017

Yes typically a CR is only good for 90 days so its standard practice with a new build that its going to expire before the house is finished and they have to rerun it again. Its standard practice with any mortgage. A company is going to rerun before closing to make sure you havent gone out and bought a car, opened new credit lines, not paid bills, etc.

They just ran mine right at the 90 day mark (early April) since I'm set to close in May. It was a hard pull but necessary. For me though I continued to work at the credit scores so I was able to raise mine.

My LO will do ANOTHER pull the week of closing (however it will be a soft pull).

If I were you pay for the 3B here at MyFICO and see the mortgage scores. Thats the ones your LO will see. Maybe wait until the 5th since you mentioned that date. You cant go by those scores on CreditKarma etc. And CCT is not mortgage scores so again..you cant trust those for what you are wanting to see.

Anonymous · ‎04-26-2017

@Anonymous wrote:
Hello everyone,

This is my first time posting here and I am desperate for help, so please go easy on me!

We opened our escrow on a FHA loan in late January (new build) and they obviously pulled my credit then, all good.

Fast forward to now, I did not realize until early this month that they would be pulling it again before we close (set for 5/24). So I went into a panic mode because somehow in the last 3 months my middle score had dropped just below the FHA threshold.

So I began working with a credit counselor and she helped remove old medical collections as of 4/9. My score on Privacy Guard went up but when I checked on Credit Check Total, they had dropped about 50 points!!! And one score dropped on Credit Karma as well. My credit counselor said everything should "refresh" on the 5th and be all good but I am freaking out.

So now I don't know which to believe, if any, since these are evidently not the models the mortgage companies use.

I don't know the exact date they will pull my credit again but I am assuming within a week before we are set to close? Can anyone help me!1

Also scores dont just drop 'for no reason' by 50 points. That sounds like late pays or something happened.

Anonymous · ‎04-26-2017

Thank you. Nothing new is showing as to why my scores dropped. The only thing I can think of is it is because of the disputes?

So the report through myFICO will give me the same scores my lender sees? I don't know what the 5th is about but it was mentioned to me.

Anonymous · ‎04-26-2017

Yes the 3B gives you not only the various FICO scores 8, 9, etc... but also your mortgage scores, auto...When I had my mtg scores both times from here, and then my lender ran them, they were EXACTLY the same.

Anonymous · ‎04-26-2017

Oh and whatever disputes you have put on, you are going to need those removed or satisfied by the CRA. Your lender will more than likely insist on it.