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Pre-approval now or wait for score increase?

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Revelate
Moderator Emeritus

Re: Pre-approval now or wait for score increase?


@Anonymous wrote:

@skigirl916 wrote:

FWIW, when my lender ran my credit - and others when I shopped around - my scores were 20 points LESS than those provided by MyFICO. I'm really disappointed in this site for that reason. Do NOT rely on this site for precise numbers when it comes to rate shopping. They just won't be the same.


That's good to know.  Thank you.


That's been fixed for the individual and 3B instant in time pulls (EX/EQ currently, TU coming) but yes the monitoring solution here uses FICO 8 which the mortgage lenders don't use.  Between knowing the EX and EQ scores, you know your best and worst possible scores... it's not perfect but it's pretty good.  In my case I know I can do no worse than 683 as my EX was 712 so regardless of where my TU score falls on the mortgage app, 683 is the worst I could do.

 

Also, lenders can use what's termed a Rapid Rescore to trigger lenders to report current balances just in the situation you're describing.  S10 is right regarding the mortgage scores can be up or down, but the people who's scores are higher, don't complain typically Smiley Happy.

 

If you want to know, pay the $40 for the EX and EQ reports here, scores used "most commonly" are pretty much the scores used by literally everyone as far as mortgage lending goes; otherwise kick the application in and go for it.

 

+1 to what S10 stated regarding scoring and the rebuilding secton, see if there's any quick wins.




        
Message 11 of 15
Anonymous
Not applicable

Re: Pre-approval now or wait for score increase?

How much are you putting down the house? If you get the score up 20-30 points and put 20k down you can get a really good rate. My middle scores were 670 and I got approved for 3.625 last week while putting 20% down on a 30 year conventional 

Message 12 of 15
StartingOver10
Moderator Emerita

Re: Pre-approval now or wait for score increase?


@Anonymous wrote:

How much are you putting down the house? If you get the score up 20-30 points and put 20k down you can get a really good rate. My middle scores were 670 and I got approved for 3.625 last week while putting 20% down on a 30 year conventional 


^^^For a conventional loan the scores also impact the mortgage insurance rate - not just the interest rate. There is a very real benefit to having at least a 680 score and a more substantial MI savings at 720 and above.

Message 13 of 15
Anonymous
Not applicable

Re: Pre-approval now or wait for score increase?

I got underwriting approval in the last week with my middle score in the 630's. Its below 640 so my interest rate is a bit higher, 4.625 but I'll take it considering I didn't even expect to be approved.

Message 14 of 15
Anonymous
Not applicable

Re: Pre-approval now or wait for score increase?


@Anonymous wrote:

How much are you putting down the house? If you get the score up 20-30 points and put 20k down you can get a really good rate. My middle scores were 670 and I got approved for 3.625 last week while putting 20% down on a 30 year conventional 


5% down.  We're going through a credit union and speaking with a loan officer the other day he says since our down is a mix of our money and gift money we'd likely have to get and FHA loan.  No way we can put down 20%.  I wish we could but we have 2 kids (1 in daycare) so the savings build up was slow going. I don't know what our middle scores are.  I don't even know what that means Smiley Happy . So hopefully in the next week or two we see and score bump.  Thanks to everyone for the advice.

Message 15 of 15
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