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Valued Member
Mortgage_Quest
Posts: 33
Registered: ‎09-13-2012
0

Mid Score Dropped 11 Points before closing

I was pre-approved with a mid score of 645 for up to 240K on November 1st finally found a house and signed a contract for purchase price of 190K going with USDA but an old Paid collection was re-reported to Equifax which made my mid score drop down to 634.  Loan officer is saying I should be good to close around January 15th.  Will they pull a second credit report or score before close?  Will the drop prevent me from closing? I haven't mentioned this to my loan officer yet I've had someone tell me to tell her and then someone else said not to say anything because there is a chance they will not pull my score again.  I have nothing else to help raise my score back to 640 only 4 credit cards and I always keep them reporting at 3% utilization or lower and then I only have students loans which are all in deferment.  I had one or two other charge off's that still show but everything is paid in full.

 

Any help or insight would be greatly appreciated can't sleep so worried about not being able to close...This site has help me learn a lot and is the reason I was able to clean up my credit and get to a point that I was pre-approved.

Valued Contributor
JM-AM
Posts: 3,302
Registered: ‎06-09-2010
0

Re: Mid Score Dropped 11 Points before closing

Speaking with your LO or Broker is recommended in my opinion. They usually know if the lender being used for your loan pulls another credit report. They can also give their opinion if it will cause issues with that lender since your credit score dropped if they pull another report.

 

YMMV with different lenders on the outcome, but you may feel more comfortable knowing in advance instead of the day of closing.

 

Confusing in that you are saying that an old paid collection is re-reporting. The collection being paid or not paid makes no difference as far as reporting is concerned. Was the collection removed from reports because of an agreement in writing for a PFD ( pay for delete )? Was the collection removed because of time elapsed ( 7 1/2 years ) ? Was it removed because of disputes? Why was the collection removed to begin with? 

Good Luck
May all your dreams and wishes become a reality!
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Mid Score Dropped 11 Points before closing

Did you pull your new Equifax score from myFICO?

Valued Member
Mortgage_Quest
Posts: 33
Registered: ‎09-13-2012
0

Re: Mid Score Dropped 11 Points before closing

Sorry I should have explained the collection account better...It was a PFD the collection agency gave me a hard time about honoring the PFD I tired the BBB and all other avenues I've been fighting with them all year.  Finally I sent the letter to Equifax and they deleted it but then 2 weeks later the collection agency re-reported the account.  I tried going back through Equifax but the collection agency verified it in the dispute process.....Thanks for your advice

Valued Member
Mortgage_Quest
Posts: 33
Registered: ‎09-13-2012
0

Re: Mid Score Dropped 11 Points before closing

I subscribe to Scorewatch and keep getting the notice saying my score has not changed still at 634

Valued Contributor
JM-AM
Posts: 3,302
Registered: ‎06-09-2010
0

Re: Mid Score Dropped 11 Points before closing

If you have the PFD in writing then it should be honored. I have never heard of any of the big 3 reporting agencies not honoring a written letter. I know you mentioned you tried a few avenues to rectify such as BBB, did you try your Attorney General Office? 

Good Luck
May all your dreams and wishes become a reality!
Valued Member
Mortgage_Quest
Posts: 33
Registered: ‎09-13-2012
0

Re: Mid Score Dropped 11 Points before closing

Equifax is saying I can't re-dispute it since they verified it again...I haven't tried the Attorney General but I will look into that today...Thank You
Valued Member
Mortgage_Quest
Posts: 33
Registered: ‎09-13-2012
0

Re: Mid Score Dropped 11 Points before closing

Any chance that I will be able to close with USDA with 634?
Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Mid Score Dropped 11 Points before closing

If they pull your report, they do not get a new score all they see is the report.

 

They pull it again to make sure you have not run up new debt.

Valued Member
Mortgage_Quest
Posts: 33
Registered: ‎09-13-2012
0

Re: Mid Score Dropped 11 Points before closing

Thanks Tooleman! I haven't applied for anything else


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