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Member
Krlavin
Posts: 16
Registered: ‎12-20-2012
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CREDIT SCORE DROPPED AND I CLOSE ON MY HOUSE IN 3 MONTHS! HELP!

Someone, anyone, please help me! I have worked so very very hard and diligently on raising my credit score on my own. I e gone from a 550 FICO range to over 670 since Halloween. I was recently approved for a USDA loan and have a contract on a new construction home here in MO. They've even broken ground and I have a closing date of June 25. I just checked my credit scores today bc my lender JUST made me aware (a little late, he's had my report for at least 3 weeks!) that we won't be able to close with my car account in dispute. Thanks. Lol. So I faxed Wells Fargo yesterday asking that it be taken out of dispute status.. Long story longer, my scores today are DOWN!!! Down like from 675 to 548 and 670 to 563. **bleep**??! Should I cry now? Is this gonna change everything for my closing?? The only thing that even seems different is a couple inquiries (that I didn't request). But other than that, no new collections, all seems the same. HELP PLEASE!!!!
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
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Re: CREDIT SCORE DROPPED AND I CLOSE ON MY HOUSE IN 3 MONTHS! HELP!

Why was the Wells Fargo account disputed? Were there baddies in the WF TL and how recent were those baddies?

 

 

New Member
springave1
Posts: 4
Registered: ‎07-23-2012
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Re: CREDIT SCORE DROPPED AND I CLOSE ON MY HOUSE IN 3 MONTHS! HELP!

If the dispute comments were removed than that's why ur score dropped. When accts are in dispute with bureaus those accts are removed from credit (scores wise only)which makes ur scores appear higher than what they trully are.
New Member
abby92102
Posts: 3
Registered: ‎05-03-2012
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Re: CREDIT SCORE DROPPED AND I CLOSE ON MY HOUSE IN 3 MONTHS! HELP!

Krlavin, go to the mortgage forums they can help you there!! Moving_forward2012, dallasloanguy, & Ja-am are wonderful people!!
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: CREDIT SCORE DROPPED AND I CLOSE ON MY HOUSE IN 3 MONTHS! HELP!

Bump for the OP.

Member
Krlavin
Posts: 16
Registered: ‎12-20-2012
0

Re: CREDIT SCORE DROPPED AND I CLOSE ON MY HOUSE IN 3 MONTHS! HELP!

The acct was disputed (under the advice of a lender) bc of a late payment in Jan '12. The lender I'm actually using told me I need to either get it resolved or simply remove it from dispute status. So that's the route I took. I faxed WF and asked that it be taken out of dispute status. The only other thing I can think of is it said on my report that the number of recent inquiries was bad. However, far was also something I did only under the advice of my realtor and lender. They said to check with a few LO's and see who could get me the best deal. I also was told doing so in a 30 day window would only count as one inquiry so I'm totally confused about that too. I just want to be back on track to making sure I actually get to get my house. It's crazy to know I've signed all the dotted lines and they've even begun to build it and now I'm scared they're gonna be like "you can't have a house with your credit score falling that low.."
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llecs
Posts: 32,869
Registered: ‎08-04-2007
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Re: CREDIT SCORE DROPPED AND I CLOSE ON MY HOUSE IN 3 MONTHS! HELP!

Ditto to springave1. The TL is partially removed from FICO scoring, and one of those components is the payment history. Once the dispute comment disappears, then FICO will score it once again and that caused the score drop. In essence, the dispute comment artificially raised your scores. Most lenders (including programs like FHA) will require dispute comments to be cleared for reasons like this.

 

Definitely shop around for other lenders, but at the same time try sending GW letters to WF asking if they can remove the late(s).

Member
Krlavin
Posts: 16
Registered: ‎12-20-2012
0

Re: CREDIT SCORE DROPPED AND I CLOSE ON MY HOUSE IN 3 MONTHS! HELP!

Thank you all so much for the input! I will call my lender first thing tomorrow morning. I guess my main concern at this point is what happens if by June 25 (closing date) my middle score isn't back up to 640? I mean would the loan fall through and they just up and stop building my house? I mean it's already in the works! Ugh the stress! Thanks again for any info I really do appreciate it!
Established Contributor
thankfulheart
Posts: 619
Registered: ‎09-26-2011
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Re: CREDIT SCORE DROPPED AND I CLOSE ON MY HOUSE IN 3 MONTHS! HELP!


Krlavin wrote:
Thank you all so much for the input! I will call my lender first thing tomorrow morning. I guess my main concern at this point is what happens if by June 25 (closing date) my middle score isn't back up to 640? I mean would the loan fall through and they just up and stop building my house? I mean it's already in the works! Ugh the stress! Thanks again for any info I really do appreciate it!

In my neighborhood, if the credit falls through at the end, so does the contract for the home and the builder puts the home on the market.  We've had 2 so far that this has happened to, both sold within a week, not to the original purchasers. Sad, but a reality these days.

 

Definitely work to see if you can a GW on the late. Are you sure that's the ONLY thing holding your credit back? Utilization? Anything else at all?

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)

Established Member
brokenpipe
Posts: 23
Registered: ‎01-02-2013
0

Re: CREDIT SCORE DROPPED AND I CLOSE ON MY HOUSE IN 3 MONTHS! HELP!

One late shouldn't reduce your score down to 548. That is almost statistically impossible. 

 

What other derogatory accounts do you have open besides the one late on a car loan?

Like thankfulheart mentioned, what is your util in addition to that. 

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