went from 650 to 616 too many inquiries/need 4 points to qualify for FHA

[Anonymous]

I'm looking for some advice on how to increase my middle score from a 616 to a 620 as quickly as possible for a mortgage approval or if it's even possible. I applied for a pre-approval on 8-6 with a 650 middle score. I spoke with several (four or five lenders). As of 8-22 my score was down to a 616. I need to be at least a 620. The two lenders I did submit all my documentation to are working off the 650 score from 8-6. I know it went down because a lender that had pulled it on the 22nd told me my score was too low, I needed to be a 620. The only thing that changed is that i had too many inquires but these were all in an effort to get a mortgage. I have 12 inquiries since Nov 2013 all of which have been attempts to get a mortgage except one for a cell phone service switch.

Everything has been submitted to the underwriter fro pre-approval. I'm not sure when a new credit report will be pulled or if I will get a pre-approval off the report pulled on the 6th? Is there anything I can do to get my score up four points or more to be sure I qualify? I have paid down my credit cards to less than 5.00 each but I believe Capital One has already reported me for the month. 

Thanks for any adice in advance

[StartingOver10]

How many cards do you have and how many report any balance at all other than zero?

You get points for not only having very low utilization on each card, but also having the zero balance cards report as zero except for one reporting a balance.

BTW, welcome to the forum!

[Anonymous]

Thank you. I have a lot to learn.

I have two cards both Capital One  $750 limit ending balance of $150 and the other $400 Limit ending balalnce of $341.00

Both are now paid down to zero but when my report is pulled again by the underwriter will they see I now have zero balalnces or will it be the ending balance?

[ShanetheMortgageMan]

The credit report is good for 90 days, when was the credit pulled that the underwriter is working off of?

[Anonymous]

August 6th

[ShanetheMortgageMan]

So you'll have Nov. 6th before it is checked again for a new score.  If you close before then, then the score on Aug. 6th should hold up.  If you close after then, then it'll be a new score that is used.

[Anonymous]

Will another credit report be pulled than if we close within 90 days of the 8-6?

[Anonymous]

Oh I can breathe! I thought it would be pulled again once it hit underwriting. Would my score increase by consolidating the two small credit cards I have or am I best to have two?

Thank you

[ShanetheMortgageMan]

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@Anonymous wrote:

Will another credit report be pulled than if we close within 90 days of the 8-6?

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It will be, but just to get new balances/payments on your debt.  Not to use the new scores.

[ShanetheMortgageMan]

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@Anonymous wrote:

Oh I can breathe! I thought it would be pulled again once it hit underwriting. Would my score increase by consolidating the two small credit cards I have or am I best to have two?

Thank you

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I wouldn't close or open any accounts at this point.  However I would pay off the cards if at all possible, that way if you do go past the 90 day mark and new scores are pulled then you'll likely be over the 620 mark that your lender has indicated is a requirement.