So my mom added me as an authorized user, but they did not take my social security number and told her they are not going to report to my credit report. I am not sure why they did it like that.....
So I have been dealing with a few lenders over the past few weeks, and one thing everyone seems to be in agreement on it that you need a middle score of 640 to qualify for an FHA loan. Well I had a meeting with a LO at Chase today, and I was told I only needed a middle score of 620 to qualify. This sounds like good news, as I would now quialify for a loan, but does a pre-approval hold much water here? Would I not get overturned in the underwritting proccess if a 640 is required? I am so confused now as what t odo or who to trust.
In the mean time, I am paying off my old 4+ years medical collections to try and muster up some more points on my CR.
My 2 month plan to get 30+ points:
Pay off 2 most recent medical collections (PFD) - paying OC and HIPPA the collections. Once these are gone, the other ones are set to fall off by July, so fingers scrossed I get something out of all this.
Continue to make on time payments ( has not been an issue till there was paperwork and communication issues last July)
maintain <1% credit utilization
I would look for another AU, but I heard that in the underwritting proccess they ignore the AU accounts. If anyone has any considerations or advice, I am all ears. We have found the house we would like to put an offer on, but I am hesitant until I get pre-approved for the loan.
hard to say if the 620 will hold. Remember that 620 minimum does not mean getting an approval at 620. Also remember that now they are typically pulling credit at close which will likely be sometime after your credit takes the hit for the inquiry for the mortgage so a 620 will often drop below 620.
I already have the hit on my report. I had the LO pull last Wednesday. If I follow up with Chase tomorrow that will be an additional hit, but I understood it that you only get dingged once for multiple loan pull of the same type for the purpose of shopping around.
If the LO pulled last week, it will not be factored into your score for at least 30 days. It will show up, but the score drop takes 30-45 days to appear. the second inquiry from Chase will not matter. BUT, if you apply now, when you go to close they will re-pull credit and by then the inquiry point ding is likely to have occurred.
That makes so much since, I always thought it was an immedite score drop. Hopefully by the time we plan on closing (end of June), I will have all 5-6 of my collections gone, and it will be 12+ months since my last late. This should be enough to offset a pull on my CR...I hope. I honestly have nothing more I can do once I get rid of all my medical collections, everything else is in good standing and no lates (excet student loan and last years debacle).
Do you have any idea of how many points a pull can cost me? Right now I have only one inq from last Sept., outside of that I have not had a pull in over 2-3 years.
Hard to tell. Generally 5-10 points. I have heard stories of people getting 10-20 points but tend to believe that maybe something else contributed to those like an old positive account dropping off, etc.