Will this hinder my chances for a mortgage?

[Anonymous]

I make my last car payment next month (June). In July or August I plan on applying for a mortgage. All three of my FICO scores are currently in the high 700's (774, 787, and 794). I read on here that someone paid off a loan and their scores dropped by 100 points. Can this really happen? If my scores drop by 100 points after my car loan is paid off will this affect the kind of loan and rate I would qualify for. I currently make $40,641, however, in August my salary will go up to $41,512. I have a student loan payment of $100 a month and a credit card payment of $300 a month. Is homeownership realistic for me right now or should I wait. My price range is $150,000 to $160,000. Thanks for any help.  

[ShanetheMortgageMan]

I doubt your scores will fall 100 points when you pay off your car loan, as your credit is already very strong.  Depending on what property taxes are where you are buying, and how much you plan on putting down, your debt to income ratio could look OK or it could look a little on the high side.  If you go with conventional financing, a 100 point drop would affect interest rates, but if you go with FHA then a 100 point drop wouldn't have any affect on rates.

[DallasLoanGuy]

I agree with ShaneTheMainMan

The 'someone' who had scores drop 100 points probably didnt have your strong 700+ profile.

Makes me think that their file was pretty thin.... actually.

Maybe a better question for the credit forum?!?!?!