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New Member
Posts: 5
Registered: ‎03-30-2011
0

Score dropped 20 points while in Underwriting

Hey guys! My score dropped 20 points while in underwriting. I started out with a 640 middle score during pre qualification. My loan is now in underwriting and yesterday I got my new scores and it is now a 620 with fico. I didnt open any new credit lines or anything like that. The reason why it dropped was because I paid off my motorcycle and car last month and 2 banks ran my credit scores last month to see if I prequalify for the loan. Will this stop me from being able to close? It is a VA loan with Wells Fargo.

New Member
Posts: 5
Registered: ‎04-11-2011
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Re: Score dropped 20 points while in Underwriting

[ Edited ]

I am in underwritting with Wells Fargo right now with a middle score of 627. I was advised to not do anything that would change my score. Their minimum score is 620. She also told me they wouldn't have to pull my credit again. That might be your situation as well. I also read up here that even if it drops they have an issue if it dropped from negative stuff. So stay calm and don't do anything anymore Smiley Happy Good luck! I am really stressed out myself. Oh and i applied for USDA and already approved for FHA...

New Member
Posts: 5
Registered: ‎03-30-2011
0

Re: Score dropped 20 points while in Underwriting

Oh ok, great to hear. Thank you soooo much! We are in similar situations. Now were you prequalified or preapproved  for the fha? We had to get prequalified first, then find a home, make an offer, do an inspection (optional, but good idea to do), have home appraised, send in required documents and get home owners insurance before wells fargo underwriters can give a clear to close and finalize the loan.

Regular Contributor
Posts: 188
Registered: ‎05-26-2010
0

Re: Score dropped 20 points while in Underwriting

We submit loans to Wells Fargo a lot. As long as the change in the score was not due to any new derogatories, you will be fine. Some lenders submit their own cr to Wells, and then Wells will pull their own, resulting in a lower score. As long as the history is the same on the two reports, they are fine.

 

Your LO should be able to confirm this.

 

Good luck and Thanks for Serving.

New Member
Posts: 5
Registered: ‎04-11-2011
0

Re: Score dropped 20 points while in Underwriting

FHA has automated underwritting with Wells and as far as i know i was approved through that. The letter was through FHA...the one i had to take to the realtor for the offer etc... Now i just hope USDA manual underwritting would be as smooth Smiley Happy But i know FHa is fine because the LO told me in the worst case i can use that...

New Member
Posts: 5
Registered: ‎03-30-2011
0

Re: Score dropped 20 points while in Underwriting

Oh ok....thanks guys. Yea we were prequalified with the automated system as well and was sent the letter to take to a realtor, but after you find your house, your loan will go through manual underwriting with Wells whereas a real underwriter looks at everything and wants you to send in tons of paperwork. Just got all my documents in. Only thing the underwriter is waiting on now is my appraisal before he can issue a clear to close date. Thanks again

New Member
Posts: 5
Registered: ‎04-11-2011
0

Re: Score dropped 20 points while in Underwriting

That is great news! Congrats! No news yet for me..i am very nervous. Smiley Happy

New Member
Posts: 2
Registered: ‎03-26-2011
0

Re: Score dropped 20 points while in Underwriting

Hey everyone,

 

My file is in underwriting as well and I am worried and stressed lol. Just wondering what are typical things underwriting ask for meaning conditions? I already gave 2 months of bank statements, w2s, schooling letter to show school balance, reason for job lapse, and also a reason why collections in the past meaning 2005. I still have one from 2005 that is 1100 will they let that go? The reason I did not pay it was because the collection would not accept pymnt supposably my file was in "que" and they cant take pymnts this debt was created in 2005. Now since then I have 13 accounts in good standing and my debt to ratio is only 21% the house I am applying for has 26,000 in equity meaning I am paying 80,000 and its worth 106  which i hope this helps.  Smiley Very Happy I have never been late on rent Smiley Happy I am just nervous!!!

 

Contributor
Posts: 90
Registered: ‎09-25-2008
0

Re: Score dropped 20 points while in Underwriting

I'm curious if they pulled your credit again in underwriting?

Current Score:EQ-660 (FICO) / TU-677 (FICO) (3/10/14)
6/8/12 Score:EQ-640 / TU-650 / EX-656 (All FICO Lender Pulls 6/8/12)
6/5/12 Score:EQ-640 / TU-638 / EX-656 (All FICO Lender Pulls 6/5/12)
6/1/12 Score:EQ-640 (FICO) / TU-618 (FICO) /EX-670 (FAKO)
Starting Score:EQ-542 TU-574 (4/30/2012)
Senior Contributor
Posts: 3,889
Registered: ‎05-24-2011
0

Re: Score dropped 20 points while in Underwriting

John: Concensus around here says that YMMV on whether they will pull or not. My lender did pull the very morning they funded the loan (After closing) again, but I have a really good friend here and she didn't get repulled. The best thing to do is ask your LO if they will and hopefully the LO will know the answer. They do a soft hit so you wouldn't get an alert. Good Luck.
STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
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