HELP! Lost figuring out what is next! Denied by SoFi

[Anonymous]

Hello,
I entered SL Rehab to combat some SLs that tarnished my credit. I have successfully completed the rehab program and my credit reports are updating with the new tradeline info. My Fico8 scores are EX-660 EQ-670 TU-720 I do not have any collections, 1 secured card and 2 Auth user cards. I tried to get pre-qualified for a mortgage loan with SoFi as I am not ready for the hard pull just yet and I was denied. EX was pulled and it states I have too many delinquent accts. Is it possible that even though my SLs are all current the old lates are holding me back? Is there anywhere else I can get pre-qualified without a hard pull?

[JVille]

You need to pull your Mortgage Scores and see how (bad) they are. When where the last late pmts?

[kc0039]

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@Anonymouswrote:
Hello,
I entered SL Rehab to combat some SLs that tarnished my credit. I have successfully completed the rehab program and my credit reports are updating with the new tradeline info. My Fico8 scores are EX-660 EQ-670 TU-720 I do not have any collections, 1 secured card and 2 Auth user cards. I tried to get pre-qualified for a mortgage loan with SoFi as I am not ready for the hard pull just yet and I was denied. EX was pulled and it states I have too many delinquent accts. Is it possible that even though my SLs are all current the old lates are holding me back? Is there anywhere else I can get pre-qualified without a hard pull?

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You definitely need a hard pull to get pre-qualified. Conventional may not be the best way because of the scores, FHA might be the better option.

[VALoanMaster]

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@Anonymouswrote:
Hello,
I entered SL Rehab to combat some SLs that tarnished my credit. I have successfully completed the rehab program and my credit reports are updating with the new tradeline info. My Fico8 scores are EX-660 EQ-670 TU-720 I do not have any collections, 1 secured card and 2 Auth user cards. I tried to get pre-qualified for a mortgage loan with SoFi as I am not ready for the hard pull just yet and I was denied. EX was pulled and it states I have too many delinquent accts. Is it possible that even though my SLs are all current the old lates are holding me back? Is there anywhere else I can get pre-qualified without a hard pull?

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Hi CheryR,

There is no way you can accurately be pre-approved for a mortgage without a hard pull and here's why.

1) Mortgages are based on your middle credit score & we can't get that without a hard pull.

2) In order to properly pre-approve a client we have to run their application & full credit report through an Automated Underwriting System (AUS) and there is no way to do that without a full tri-merge credit report.

Can you imagine what would have happened if SoFi gave you a pre-approval letter based on just a soft pull on 1 credit bureau & sent you out looking for a home only to have your loan denied once you actually sent in a contract?

[Anonymous]

Thank You all for your advice, I really wanted to go conventional as my employer is partnered with Wells Fargo First Time Buyers program. All of my SLs are current and reporting current, it just shows that they are closed/transferred but CURRENT the lates are as of 2016. I just wanted to know will those lates, and those closed/transferred account reportings affect my chances of being pre-qualified?

[Anonymous]

What scores are required for CONV? My understanding was min of 640 has that changed?

[VALoanMaster]

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@Anonymouswrote:
What scores are required for CONV? My understanding was min of 640 has that changed?

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I can go down to a 620 on conventional. You're generally better off going FHA if your scores are under 680 unless you're putting 15-20% down.

FHA is also more lenient with credit issues & debt to income ratios.

[JVille]

What is the last date in 2016? Obviously Jan 2016 is hugely different from Dec 2016??? In this forum Specific info is needed not Estimates. Please invest in a Fico 3 Bureau Report right here on this website so we can figure out what your Mortgage Scores really are and if there are 2 Borrowers Lenders will use the Borrower with the lowest middle score.

[Anonymous]

My issue with FHA is that I showed up in CAIVRS.
I have since rehabilitated those loans and are current but my credit report still shows close/transferred I don't know if this is a negative showing that can show up in CAIVRS again. Also, I was informed CONV does not count the 1% of SL balance and if Im in an IBR plan they can use the amount reported. With FHA counting 1% that may possibly throw us over DTI

[Anonymous]

Are the Fico 8 scores I provided not accurate for mortgage scores used? The date of my last late was January 2016. I only provided my scores as my husband has higher scores but less income, I am aware my score will be used.