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Refinancing mortgage

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Anonymous
Not applicable

Refinancing mortgage

My husband  and I are in the process of refinancing our mortgage. His FiCO score is 800 plus on all 3 bureaus. My transunion is 714, experian is 691 and equifax is 688. We plan on using some of the money to pay off all my credit cards..Which was the main reason why my scores have been low compared to his. And of course, we are also taking advantage of the low interest rates which translates to lower payments.So far everything is going well..I'm afraid that when it gets to the underwriter part, he could turn us down..what do you think? Am I over thinking this?

Message 1 of 14
13 REPLIES 13
llecs
Moderator Emeritus

Re: Refinancing mortgage

Why are you afraid they might turn you down?

Message 2 of 14
Anonymous
Not applicable

Re: Refinancing mortgage

Because of my not so great scores...they might look at my past history from 2010 -2008 I had late payments on ccards.

For 2 plus years I've been on time with student LANs and crrads cards..

Im just afraid that the 3 percent they have pre approved may not come into reality.

Weve provided te house deed, w2snin come tax docs...

Im just in panick that my scores and past history will dampen this process

 

Message 3 of 14
MarineVietVet
Moderator Emeritus

Re: Refinancing mortgage


@Anonymous wrote:

Because of my not so great scores...they might look at my past history from 2010 -2008 I had late payments on ccards.

For 2 plus years I've been on time with student LANs and crrads cards..

Im just afraid that the 3 percent they have pre approved may not come into reality.

Weve provided te house deed, w2snin come tax docs...

Im just in panick that my scores and past history will dampen this process

 


Welcome to myFICO.

 

They will take the lowest of both your middle scores so the 688 from EQ will be the score used.

 

How many late payments did you have? How severe? (30 days late, 60, 90 etc.).

 

What are the indvidual dates for the lates?

 

ETA: The fastest way to improve a score is have very low utilization on your credit cards. FICO looks at both overall and individual account utilization. Do you know the utilization for you cards?

Message 4 of 14
Anonymous
Not applicable

Re: Refinancing mortgage

From the looks in my in credit report today, there was an inquiry from experian which is 691. I'm assuming they used that particular one. I had one late 30 day payment  in 2009 and another one in 2010.  I have 3 others that we're 30, 60, 90 days past due back in 2007-2009.

 

 

 

Message 5 of 14
Anonymous
Not applicable

Re: Refinancing mortgage

Utilization of my credit cards : 1 major cc, opened with a balance of 3,000 with credit limit of 5,000; I have 3 dept store w credit limits of 3,000 at zero balances.

I have 7 closedcredit cards with varying balances but that i plan on paying off with the new refi. The officers know of it.

Message 6 of 14
MarineVietVet
Moderator Emeritus

Re: Refinancing mortgage


@Anonymous wrote:

From the looks in my in credit report today, there was an inquiry from experian which is 691. I'm assuming they used that particular one. No lenders use the lowest middle score it's a joint application.

 

I had one late 30 day payment  in 2009 and another one in 2010.  I have 3 others that we're 30, 60, 90 days past due back in 2007-2009. A 30 day late generally loses most of it's impact after a couple of years and a 60 day late is looked at as essentially a 30 day late after several years. But a 90 day late is considered a major negative and will impact your score for the entire 7 years it can report.

 

FICO looks at not only the severity and recency of lates but how many are reporting at the same time.

 

 

 


 

Message 7 of 14
MarineVietVet
Moderator Emeritus

Re: Refinancing mortgage


@Anonymous wrote:

Utilization of my credit cards : 1 major cc, opened with a balance of 3,000 with credit limit of 5,000; The utilization is 60%. That's pretty high and is definitely hurting your score. If you could bring that percentage down to say 30-40% as fast as possible I think you would see a nice bump. Exactly how much is impossible to say.

 

I have 3 dept store w credit limits of 3,000 at zero balances.

I have 7 closed credit cards with varying balances but that i plan on paying off with the new refi. The officers know of it. Are any of these reporting the credit limits along with the balances? if so then they are being factored into your utilization. If the credit limits are not reported then they are excluded from utilization calculation.


 

Message 8 of 14
Anonymous
Not applicable

Re: Refinancing mortgage

Thanks for your input

I figured that would be the case..

I guess I'm just hoping the underwriter will approve us, since my husband has an excellent history and FICO scores

Im hoping that between our incomes together will be looked at as well

Message 9 of 14
MarineVietVet
Moderator Emeritus

Re: Refinancing mortgage


@Anonymous wrote:

Thanks for your input

I figured that would be the case..

I guess I'm just hoping the underwriter will approve us, since my husband has an excellent history and FICO scores

Im hoping that between our incomes together will be looked at as well


I really doubt you'll have any problems.

 

Be sure and keep us updated.

Message 10 of 14
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