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We were supposed to close on Friday with an FHA loan and knew we were right on the line --- our loan guy pulled our updated FICO late and lo and behold, Chase closed 2 CC accounts that we have been paying down steadily via Take Charge America....this account closur dropped my score from 640 to 627 and now we can't get the loan and to top it off the house is going to go into the forclosure process soon ---- I have about $3k that I can put towards paying down balances or opening a secured line through USAA or some other such group.
What is the consensus on the fastest way to get an upward movement here? I'm not sure I want to add another trade line but if that is the difference in getting the loan or not I'd do it.
Another TL is probably not the best idea. What is your current Utilization of your total available credit?
@Anonymous wrote:We were supposed to close on Friday with an FHA loan and knew we were right on the line --- our loan guy pulled our updated FICO late and lo and behold, Chase closed 2 CC accounts that we have been paying down steadily via Take Charge America....this account closur dropped my score from 640 to 627 and now we can't get the loan and to top it off the house is going to go into the forclosure process soon ---- I have about $3k that I can put towards paying down balances or opening a secured line through USAA or some other such group.
What is the consensus on the fastest way to get an upward movement here? I'm not sure I want to add another trade line but if that is the difference in getting the loan or not I'd do it.
I'm confused. The house you are buying or the house you live in now is going into forclosure?
Confused.
If it is the latter, then I am even more confused on why you are getting another house.
Open accounts don't close out if you pay them off...unless you're referring to closed accounts with balances that you've kept in good standing every month payment wise.
Why would they pull your credit days before your suppose to close? Is that something new? Either way that is crazy the lender could still go ahead with it since that is their score requirement and not a FHA.
It is SOP for many lenders to repull your credit just before closing - in fact, they generally will also reverify assets, income and employment to make sure that everything is the same. Some lenders call it quality control (QC).
Ok - Finally have interwebs back and can type for real..
Comedy of Errors began with the sellers getting the short sale approval (only a $10k "loss") on 10/19 provided we settle by 11/30. Sellers who no longer live in the house and live out of state and have a realtor who is less than responsive, did not tell us that the approval was given until 8pm on Halloween. We immediately ordered inspections and the like and put in for an appraisal. Because of the new Dodd/Frank rules, our mortgage guy could not call an apprasier and ask them to hustle out there..after 10 days of waiting and no apprasier picking up the job, the fee had to be bumped to 50% above normal to get someone to take the job. Appraisal was finally completed last Tuesday, yet as of this typing, we still have not been given the results.
Adding to the Comedy, we had asked our mortage guy to lock in our numbers and let us know if we needed to do anything last minute, like pay down a CC a bit, to make sure we stayed above 640.....his father became ill and had emergency surgery and complications and he never handed off the job to anyone else in his office. We assumed all was well (our mistake) and arranged for renters that we had lined up to move into our house. They were living month to month deal in a virtual slum (we know the renters) and were glad to get out. Their landlord was happy because she had been discounting their rent and immediately found renters at a higher rate. Everyone told us we were set until the11th hour when suddenly we were not because unbeknowst to us, Chase decided to report as closed some very old accounts that we were regularly paying down. This dropped my score severely and made us ineligible for the FHA loan - and we are now essentially moving our stuff into a storage unit and living with a relative. Hence, the Comedy of Errors title.
My stats are:
Card | Limit | Owed | Utilization | 30% Mark | Amount | Payout Needed |
BofA | $ 5,000.00 | $ 2,577.31 | 52% | 0.3 | $ 1,500.00 | $ 1,077.31 |
CapOne | $ 2,000.00 | $ 1,081.00 | 54% | 0.3 | $ 600.00 | $ 481.00 |
HSBC | $ 3,100.00 | $ 1,360.27 | 44% | 0.3 | $ 930.00 | $ 430.27 |
CitiDiv | $ 4,680.00 | $ 2,387.73 | 51% | 0.3 | $ 1,404.00 | $ 983.73 |
CitiDiam | $ 3,490.00 | $ 1,060.21 | 30% | 0.3 | $ 1,047.00 | $ 13.21 |
$ 18,270.00 | $ 8,466.52 | 46% | $ 2,985.52 |
I also have a VW Credit loan that was $16K after putting $10k down and is now about $6k left...never late. I do have a few older BADDIES including a tax lien that I recently paid off and was lifted (income dropped over 50% and couldn't sell my old home - put me in a giant hole when I put $30k into the house to try and sell it and it couldn't overcome the market).
I can easily pay down $3k to get my average utiliztion to be just under 30% --- will that help get me a 13 point bump or should I look at another route? My mortgage guy said he has used a "credit repair guy" (which I'm leary of in general) for many of his clients in the past and had great success. I think it's nothing I can't do on my own -- the company he is recommending is Trinity Enterprises LLC in Florida. My Realtor is a family friend and has always done good by us and uses this mortgage guy exclusively so I don't think this is a scam....but again, I think I can save myself the $500 or so fee and just fix it myself.
Last question - if I sign up for the MyFico ScoreWatch - will that ding my credit further when it pulls my numbers?
Thanks again everyone.
Having 1 card, showing a balance less than 10 percent of available credit, and all other cards showing 0, is generally accepted as yielding maximum points for fico. At 627, you must have some negatives as well.
You still have not addressed what your util is. Are all/any of your cards maxed out? That is the first thing to answer here.