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Opinions Please

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sailon
Valued Member

Opinions Please

In process of buying a home. Paperwork is in UW and, from reading several posts here, I have a question. The loan, if approved, is FHA. MyFico scores are 719 TU and 694 EQ pulled on 12/17. Going back to Jan '09 the only blemish on my credit is 1 time 30 day on a auto loan with Wells Fargo. The auto loan is paid off as of this month. The loan amount for the mortgage is well below the 28% front end and 34% back end. My question is, from reading posts here, since this is a FHA loan the lender will pull CR day of closing, right? The WF auto loan, if you go back 3-4 years, will show (2 )60 day lates but as of this month WF shows pays as agrees on my CR. So, I am supposed to close on Jan 6th. If WF reports payment history to CRA's  before I close and scores drop due to the lates could this kill the deal. Any feedback/opinions would be helpful and appreciated.

Message 1 of 7
6 REPLIES 6
JM-AM
Valued Contributor

Re: Opinions Please

I believe since you are using FHA even having a score drop unless under qualifying score which we will say is 640 but some lenders are even lower it will have no change in anything. Everything will still be the same I believe.

Good Luck
May all your dreams and wishes become a reality!
Message 2 of 7
sailon
Valued Member

Re: Opinions Please

Thanks JM-AM

Message 3 of 7
Lel
Moderator Emeritus

Re: Opinions Please

I'm a little confused here - are you saying that the two 60-day lates from 4 years ago are not currently appearing on your credit reports, but you think they will appear on your report that will be pulled just before closing in a couple weeks?  If that's what you're saying, where do you see this non-reporting of the old late payments - on the credit report pulled by your lender, or on a credit report pulled by yourself?

Message 4 of 7
sailon
Valued Member

Re: Opinions Please

That is correct- the lates are not showing up on my CR- on my CR report Wells Fargo reports paying as agreed. The loan was paid off this month but on the November statement I noticed that the balance was greater than the Nov and Dec payment combined. So I called WF to see why the two payments didn't total up to the balance showing on the statement. WF informed me that this was a simple interest loan and some payments had been paid after the due date and late charges had been added. I asked the CSR if any payments were 30 or 60 days past due and she informed me I had 2 payments that were 60 days past since the loan was taken out. So I'm thinking since WF had not reported these lates as they occured they may now report since the loan is now paid off. I don't want to be paranoid but I have read several report here that with an FHA loan the lender will pull my CR on the closing date. My loan is way below what I was prequalifies/approved for and my debt to income ratio is great. Have no inquiries on CR for over two years and utilizationon CC is at 2%. It would appear I'm a great candidate for a mortgage loan but don't want any surprises.

 

 

Message 5 of 7
Lel
Moderator Emeritus

Re: Opinions Please

Okay, I understand, and this is my theory.  Those lates have been reported ever since they first occurred and do appear on your account history, but on the credit report that you pulled yourself, the payment history doesn't go back that far.  However, it is very possible that the payment history on the report pulled by the lender goes back much farther.  That is, they may already be aware of those late payments, and these have already been factored into your score.  So when the lender pulls your report again next month, nothing new is going to appear - they'll see your old 60 day lates, just as they did the first time they pulled your reports.

 

It sounds like you've already been approved for your loan, pending the last credit check.  I doubt that this auto loan is going to be a factor.  Don't run up your credit card balances, don't open up any new accounts , keep paying your bills on time, and your credit report will be essentially the same as it was when you were initially approved.

Message 6 of 7
sailon
Valued Member

Re: Opinions Please

Thanks Lel

Message 7 of 7
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