Lost 6 points from inquiries??? Freaking out!

[Anonymous]

DH and I applied adn were preapproved for an FHA loan. This is the chain of events that happened:

pulled scores once. Dh's middle was at 618.

Credit card reported. Had scores repulled. No change.

Pulled two days later when a late payment was removed due to error. Score is now 620 (up from 614- this was his lowest report.

At this point, we received our preapproval.

Offered on a house.
Had our credit REPULLED to see if we qualified for USDA... we did not.

NOW, I get a scorewatch alert that DH's mid score dropped SIX points. I AM FREAKING OUT!

Six points from these mortgage inquiries? I thought they all counted as one pull in 14 days? This was all within 14 days! 

I don't know what to do. I immediately called the LO and he said it woudl be fine since the score he has is within 60 days. But why did we lose 6 points from inquiries? NOTHING else has changed on the report. 

Now I will be so stressed until this goes through underwriting!!!!!!!!!!!

[BrianB_The_Loan_Professor]

1 inquiry could drop your score by that amount especially since you are in a lower credit score zone.

Also was it the same bank that was pulling? That may be looked at differently as well?

Get it closed during the 60 days

Good Luck

B

[Anonymous]

YES it was all the same bank. The big drop did not happen until the last pull. I am so stressed now. We are set to close on March 19th and he hopes to have us out of underwriting by Wednesday. Everyone please keep your fingers crossed! UGH!

[Anonymous]

there is a 30-60 day timeframe after you get a mortgage inquiry before it hits your report and dings your score (it shows up but they do not factor it into scoring for that long),  The score drop was probably from the first inquiry.  Bad news, depending upon how long it was between pulls, that means you may get another hit an a few weeks.  If you have any CC you can pay down more do so so you can bring your score back up and DO NOT charge anything, pay any collections, or do any more inquiries as they may lead to further drops.  Also, not to scare you, but it is common for credit to be re-pulled at close to re-verify info.  Even more so when FICO was at minimums or debt was high.  THis is the UW's call and the LO has nothing to do with it.  Some companies do it, some do not, and others it is a case by case thing.  so, their is probably a 1 in 3 chance or more they will re-pull before closing anyways.  Do what you can do gain back those couple points and keep your LO up to date with what is going on. 

[Anonymous]

There were less than 10 calendar days between all pulls.

The LO said they do not pull credit prior to closing and that their report is good for sixty days. We have paid down all card already but they haven't reported yet. Paid off one charge card and left one with like a $10 balance. 

I'm so nervous. I am going to be stressing about this until the day those keys are in my hand. I knew with exactly a 620, it was risky, but since we had paid down the cards after that 620, i thought we were fine. I don't know if we can gain 6 points just from the balances going down on the cards but i sure pray to god we can.

[Anonymous]

I know what you mean about being a wreck until the keys are in your hand!  I'm pulling for you!!