I have posted a few times about my mortgage situation and I'm now I'm even more confused! My husband and I signed a P&S for a new build home back in October. At the time we received a conditional mortgage approval from our lender. The mortgage condition was that I would be able to qualify for PMI at closing. At the time we anticipated closing at the end of April. The mortgage is being approved based solely on me because my husband is self-employed and his income is volatile and we qualify on my income alone so it's just easier for me to get the mortgage alone. To qualify for PMI the minimum credit score accepted is 700. I've spent the last several months trying to get over the 700 hump. Today a number of updates were made to my credit reports.
- An old utility account with NStar was deleted from my Experian report. It showed a $1,600 charge off, I never paid it and it was scheduled to be removed next month. Per the suggestion of someone on the board I called Experian to find out what the exact date of removal would be and the woman I spoke to offered to submit it for deletion immediately! Sure enough I received confirmation this morning that it had been deleted.
- A paid medical collection from 2008 was removed. I had been sending GW letters to the CA for at least the last 2 years and had no luck. I decided to try again last week and sent an e-mail to the president of the firm and today when Experian sent me the updated report it wasn't there, I pulled TU and EQ as well and it had been removed from those reports too! I'm beyond happy about that! My last late payment was 3 years and 7 months ago. My worst late was 60 days. I have no other negatives now that this has been removed.
- My VS card updated to a $0 balance. So as of today, I have 4 accounts showing a balance. My Capital One card is showing 32% utilization. My Show MC (CL $800) is reporting a balance of $1 and that should update to $0 any day now. My Legacy Visa (CL $600) is reporting a balance of $21. I had paid it in full but something posted the day the statement cut and I didn't realize it, it has since been paid in full. My Care Credit (CL $2000) account is reporting a balance of $110. My total utilization is 5%.
- I have paid the Care Credit account in full, I have paid down my Capital One card to 8% utilization and the Legacy Visa card is also paid in full. These items won't report until later this month.
So here is my confusion. With the updates that happened today my TU score went up 18 points, my EX went up 30 points but my EQ score went DOWN 2 points! I pulled all three reports, there is nothing on the EQ report that is different. Why would two of my scores go up so much and my EQ go down??????? I need to have my scores over 700 by the end of the March, our house is scheduled to be finished early so we will now be closing in early April. Any advice would be greatly appreciated!
Starting Score: FICO TU 503 FICO EX 470 FICO EQ 498
@Peter1142 wrote:Why do you need a 700 score? You can buy PMI with less than a 700 score. IDK about your specific situation with the new construction.
Credit scores are unpredictable... Your EQ went down, but if it is already your low score, it doesn't really matter. Only the middle score would need to be above 700.
I need 700 scores because the lender stated that PMI for loans over $500K require a higher credit score. It is 620 for loans under $500k. This particular situation is particular tough because the lender is the builder's bank and they are allowing us to do a jumbo with only 5% down. The home is in a county whose FHA limit is much lower than all the towns that surround it. Conforming in the county the house is in is $475k, the surrounding towns are over $500. I won't get into the details but we did not realize the limits were lower in this town until after we fell in love with the home, we were lucky that the builder's bank allowed us this flexibility. As far as the score goes, for the last 10 years EQ has always been my middle score and I was confused as to why it went down when all the rest went up. I realize if 2 of the 3 are at 700 it shouldn't matter but I don't want to worry about making it through underwriting and I'd prefer all of the scores to be 700. It would make me feel much better. I also was just curious as to why it went down when the other two went up significantly. Plus the only score I can be sure is correct on here is the EQ score.
@Cortazar81 wrote:Ours dropped by about 3 points when the mortgage company did their credit pull. I would look to see if that may be the issue just so you know.
No that's not it, they pulled my credit on January 22nd and they pull all 3 reports when they pull my credit. So it still doesn't explain why 2 would go up double digit points and 1 would go down. I wonder if this could be a rebucketing thing? If it is how long will it take me to regain the points.
I am sure you'll gain those points rigth back next month.
@meehan22 wrote:I am sure you'll gain those points rigth back next month.
I hope your right! My score alert lists "You have a serious delinquency (60 days past due or greater) or a derogatory description on your credit report." but I pulled my report and there was nothing new, any derogatory item on the report has been on the report. The report states my last late payment was 3 years and 7 months ago. I'm hopeful this is a very temporary change.
So here's a quick update. I did everything that was suggested on the board, the last time I checked my scores I was still at 692 for a middle score but that didn't include my utilization change. So I reapplied yesterday morning and didn't hear a thing back from the bank. Given the situation I would have expected a call if there were issues because this is the builder's bank and our closing date is March 27th, so we are under the gun. Anyway, about an hour ago the loan officer I deal with e-mailed me to clarify my employment dates with my current company. I'm viewing this as a positive sign that suggests I passed the 700 score hurdle and now they are actually putting my file together with the underwriter. I'm anxious but excited!! Fingers crossed all goes well from here!
