Yesterday, we just signed contract for a new construction, purchase price is $340K. I have to provide the pre-approval letter to builder within 25 days. My lender wants to pull my credit again for pre-approval on 12/1, so the new credit score will show utilization below 30% and that AU is removed, resulting in higher score (hopefully). My current credit report has high utilization and i am an AU on 2 credit cards. The AU accounts have high utilization but are the oldest accounts on my credit. If I am removed, then average history would be 2.5 years. I still will have a student loan and 4 other credit cards. Do you think this will make my score drop? If so, how many points?
We are not sure which lender to go with. One lender provided a quote with 3.5% down, FHA, 30 yr fix, $2500 buyer bonus, 4.3% interest rate. The other lender says they can definently match or beat this quote, tomorrow she will let me know. The interest rate is pretty high. If my score goes up will the rate go down? If so, how much?
Thanks!
