What are my chances of this loan going through?

[Anonymous]

Background information

Last late payment 1 year ago

All creditors paid with $0 balances

Last creditor over 1 year ago

1 credit card that I normally try to keep below 30% (although had to get car fixed with it last month)

4 Student loans that are currently being paid on time (was 5 but I paid last payment on one last week)

With a mid score of 624 I had a house under contract and approval to close by underwriter.  Appraisal on the house came back $35 under contract price and because it was a short sale bank refused to go that low....lost out on that house and on inspection and appraisal fees.

A month later we have just entered another contract today on a home when i noticed  my score has dropped to 610 because of high credit card balance.  Two weeks ago I paid the card off to under 10% but it hasn't hit my credit yet.

My LO is going through the same company (AFR) that approved my last loan but I'm worried that this drastic drop in score is going to kill my chances for this house. The only facotrs that have changed are paying off of a loan and a credit card that is now paid back down.  We are set to close Nov. 22.  What do you think my chances are?

My realtor and LO don't seem worried but I'm about to cry

[creditisbetter2]

What I would do is ask your lo what is the minimum credit score you need to have to get this loan through.  If it's say 640 then you know how many points you need to increase before you close.  Based on what i've read on this board, your lo can do a rapid rescore since you said you paid your cc down.  Go to the top of this page and type in rapid rescore in the search box and see what others are saying about that.  It might be your best option right now.  Good luck.

[Booner72]

Easy fix. Get new statement. Give to lender. Lender does "rapid rescore" and your points come back.

[Booner72]

PS: Points come back if nothing else has changed on your reports. (ie, no new negatives, no accounts dropping off due to AAoA, no new accounts ruining AAoA, no new inquiries, etc etc).

[Anonymous]

I have nothing new or old coming off due to AAoA, the only thing is the student loan that was paid off.  There honestly wasn't any way to stretch out the payments anymore to not have it come off.

I thought it was 620 they need but when I go onto AFR (the underwriting co website) they say they go down to 600.  I will give my LO a call and ask. 

I really want this house!  And after being so close and underwriting approved for the first house this is majorly depressing and stressful.

[Anonymous]

Just an update...

Was about to do a rapid rescore this week but all my new balances hit my report Wed!  Saved the $90 AND my score not only rebounded but it went up to a 632!  I called my LO and he pulled the new scores.  Packet went to underwriters today and we are scheduled to close on the 22nd!

I am feeling pretty good about closing this one seeing as it's the same underwriting company that approved my loan for the house that fell through due to low appraisals and that nothing has changed except for a higher credit score

Fingers (and toes) still crossed hard though!

[Scope27]

CONGRATS...talking about good timing on the updates huh

[mamahearts]

That's awesome! Good for you!

[Anonymous]

OMG I AM SO FRUSTRATED!!

My realtor has been telling me that our LO should have had the appraisal ordered by now.  So we finally get the disclosure forms from the underwriter, sign it and wait for the appraisal order to go through.  In the meantime my score goes up again (low score now 643) and get an email stating that we have a preliminary approval from underwriter AGAIN and all they need is the appraisal and home insurance documents.

AND THEN we get an emai from my realtor asking LO to hold off on appraisal because she does not have the short sale approval letter from the bank!  Granted we offered over the preapproved short sale amount but I would think this is something she should have stated before it went to underwriting!

So now once again we have underwriting approval and no house!!

[pizzadude]

So this is a short sale ???  I am sorry to hear about your frustration, but short sales are notorious for dragging out for months, or never going anywhere.

Banks have their own timelines and agenda when it comes to losing money. 

Many realtors will even avoid short sales, due to the miriad of problems that come with them.

My advice is to buckle down and be prepared to wait this one out if you can.   Hopefully your score will continue to go up.

Good luck and keep up posted !