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Mortgage score updates

New Member

Mortgage score updates

Hello, I recently paid down credit card debt and saw my FICO 8 scores from the 3 agencies improve.  I did not see any updates to the scores related to what mortgage lenders look at (Experian 2, Transunion 4 and Equifax 5).  Does this take place monthly or do they update when a lender asks for them?  Trying to figure out where my score it at. 

11 REPLIES
Community Leader
Super Contributor

Re: Mortgage score updates

Did you get the 3B report? 

Contributor

Re: Mortgage score updates

In my recent experience I had significantly paid off revolving debt. The other FICO models updated shortly there after with the greatest increase in score to the  FICO Bankcard models. However, the older FICO versions and FICO Mortgage model versions took more time to see any score change. It actually took several weeks and months and then there were only modest increases. The FICO Experian Mortgage model had the largest increase and updated the soonest of the 3 CRAs. When the Mortgage Lender pulled the scores the scores did not change and were exact as to what the current Mortgage scores with all 3 bureaus were at on myFICO at the time.

|CHASE VI SIG $38K|CITI DIVIDEND MC $27K|CITI DOUBLE CASH $12.5K| VIRGIN AIR SIG VI $23K|CHASE MARRIOTT VI SIG $26K|US BANK CASH + $23K| US BANK LOC $13K|AMEX PLATINUM OPTIMA $8.5K/AMEX BCE $25K|BARCLAY RING $8.5K|FNBO PLAT VI $35K|NORDSTROM VI SIG $20K|DISCOVER $27K|PATELCO CU VI $7K|TARGET RED $3K|JC PENNEY $6.5K|MACYS AMEX $4.4K|CITI SEARS $2K|CHEVRON $2.5K|FIRESTONE $3K|PAY PAL CREDIT $4K|SYNC RAINSOFT $14K| 1UCU $35K VI|. FICO 8 AVG: 750 AAoA 14.4 Yrs| Goal Fico 800
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New Member

Re: Mortgage score updates

Thanks, your response is helpful.  It sounds like I need to give it more time for the mortgage scores to improve.  The lenders say they need a minimum of 680 and mine came in at 642.  My other scores have increased by 15-30 points in the last 3 weeks.  Combined, it does not seem like a large enough increase to take the risk of having them pulled again and being turned down. 

Moderator

Re: Mortgage score updates


Sunkist wrote:

Thanks, your response is helpful.  It sounds like I need to give it more time for the mortgage scores to improve.  The lenders say they need a minimum of 680 and mine came in at 642.  My other scores have increased by 15-30 points in the last 3 weeks.  Combined, it does not seem like a large enough increase to take the risk of having them pulled again and being turned down. 


You can pull them here and it is a soft pull because it is a consumer pull and not by the lender. Don't have your lender pull until you know what your new mortgage scores are.

Regular Contributor

Re: Mortgage score updates

Hmm, do they mean to get a certain interest rate, because you can qualify for a loan with those scores. My middle was supposed to be 620 to qualify but then after I paid off some collections, it jumped to 675. 

Established Member

Re: Mortgage score updates

 


christian17 wrote:

Hmm, do they mean to get a certain interest rate, because you can qualify for a loan with those scores. My middle was supposed to be 620 to qualify but then after I paid off some collections, it jumped to 675. 


do you have any advice on paying off collections.  I've heard a lot of conflicting things about it, such as not helping but hurting your score.  I've heard that it is better to just let the collection run it's course (7 years) until it drops.  but your score increased.  What am I missing here?  Please advise.

Starting Score: 591 EQ, 571, TU, 587 EX
Current Score: 597 EQ, 579 TU, 595 EX
Goal Score: 750+


Take the myFICO Fitness Challenge
Frequent Contributor

Re: Mortgage score updates

Being able to determine if your score increases from paying off a collection is a hard call for anyone to make. If the collection agency is updating your credit report every month to show non-payment, then the collection is holding down your scores. The purpose of paying off or settling the collection is to get the collection agency to stop updating every month and close the account. The tricky part is some mortgage lenders have specifications on if they want the collection paid in full or if it can be settled. Either option will not hurt your score. Having the collection on your report is hurting your score. 

 

Another alternative is contacting the collection agency and negotiating what's known as a "Pay for Delete" arrangement. This means that once you pay the collection in full, the collection agency will remove the collection from your credit. Doing this can get you a boost in points because the account is removed and makes it so it never appeared on your credit report. 

FICO8 Scores - 625TU / 640EQ / 649EX
On Mortgage Journey
Starting Mortgage Scores (Feb 17) 523EQ / 547TU / 564EX
Mortgage Scores Aug 17 624EQ / 649TU / 650 EX
Established Contributor

Re: Mortgage score updates


Sunkist wrote:

Thanks, your response is helpful.  It sounds like I need to give it more time for the mortgage scores to improve.  The lenders say they need a minimum of 680 and mine came in at 642.  My other scores have increased by 15-30 points in the last 3 weeks.  Combined, it does not seem like a large enough increase to take the risk of having them pulled again and being turned down. 


Did the lender say why they need such a high score? Are you going jumbo?

 

National Mortgage Banker.
VA Mortgage Expert.
Established Contributor

Re: Mortgage score updates


christian17 wrote:

Hmm, do they mean to get a certain interest rate, because you can qualify for a loan with those scores. My middle was supposed to be 620 to qualify but then after I paid off some collections, it jumped to 675. 


Hi Christian 17,

 

Did you pay off collections or were they charge off accounts?

 

National Mortgage Banker.
VA Mortgage Expert.