04-11-2011 08:00 PM
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.
04-11-2011 08:36 PM - edited 04-11-2011 08:36 PM
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 Good luck! I am really stressed out myself. Oh and i applied for USDA and already approved for FHA...
04-11-2011 08:43 PM
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.
04-12-2011 01:21 AM
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.
04-12-2011 09:22 AM
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 But i know FHa is fine because the LO told me in the worst case i can use that...
04-12-2011 05:10 PM
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
04-24-2011 06:33 PM
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. I have never been late on rent I am just nervous!!!
06-14-2012 08:46 AM
I'm curious if they pulled your credit again in underwriting?
06-14-2012 11:22 AM
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