Hi guys, first time poster.
planning on a physician mortgage this spring. Spoke with broker sent in app. They ran my fico scores, 711/708/697. For their physician loan program, they will give mortgages for 417k-650k with a score over 660 ( they take the middle score) with 10%down, over 705 with 5% down and over 720 with 0% down. so our planned home is 405k, meaning I need 20k down, which I didn't have. So mortgage company allowed me to take out a unsecured physicians loan through them for 50k, with the notion that I can apply for the mortgage in 60 days as they will ask for my bank statements for the past 60 days and at that point it will look like I had 50k saved up and were all good for down payment. so I did that.
small snag. I can't apply for mortgage formally for 60 days, closure takes 30, credit score only good for 90 days. So they will have to rerun my credit scores prior to the formal app in May. What of theybe dropped 9 points to 702/699/688?? Now I have to put 10% down! an extra 20k I don't have.
Kickers. I bought a new car about a week or so before we mad the purchase on this house. We honestly had found nothing we liked and had essentially given up when we found a house we love that is in foreclosure. We came to an agreement with the seller for a price that's over 250k less than it sold for 10 years ago, and over 175k less than it's currently assessed for. So needless to say, we want this house.
so. I got super paranoid my scores will have taken a huge hit from the initial mortgage, auto loan and personal loan inquiries plus the new installment loans on my reports.
i ran my myFICO reports today. I got scores of ex/eq/tu of 682/669/706 
questions.
1). How are the myFICO scores so much lower 1 month after they were run by the mortgage lender? Literally nothing has changed on them except a few inquiries and on th. Current reports, no individual report has more than 4, ex only has 2. Are there calculators just a bit different and perhaps my scores are closer to what they were a month ago? The 50k loan and carload haven't even reported yet,
2) i have one acct with a 2 30 day lates in two reports eq and tu, but it's about 4.4 and 5.5 years ago respectively. The ex report as those plus one other 30day late on an acct of my wife's I was apparently a co signer on, trying to get that off, but it was 2 years ago, both of these accounts bave been paid off and closed for over a year. Over 3 years on the first one I noted.
3) the #2 detriment on eq and ex and #1 on tu is my credit utilization rate, it was 67% on ex (my one CC apparently doesn't report to them) and 85% on the other two. Everything I've read said hitting these hard and fast right now will maximize my score when it's rerun by the mortgage company in roughly 60 days. My balances were as follows..... 439/750 - 4,000/5,000 - 9,500/10,000. So I did a few things, namely using some of hat 50k personal loan to pay off debt. I got the low $750 card, a lowes/homedepot store card, limit increased to 3,750. That is now 392/3,750. I got e0the 5,000 increased to 6,100 AND paid off 2,500 of the balance. It's now 1470/6100. I hit the big card hard, paying off 6,500 and it's now 2850/10,000. So my total util is now 10%, 24% and 28% on the cards respectively! with a total combined util of 24%, again down from 85%. For ex which the 10,000 card doesn't report to, my util went from 65% to 19%. I also spoke with both companies whose limits were increased, ensuring they did not do a hard pull to raise the limit, which they don't.
i also took 3k and paid off my old car loan in an attempt to decrease monthly payments given the new car loan.
SOOOOOOO oh wise ones......givem the large impact I made on my credit util which from what my reports say was really hurting my score....what kind of bump can I expect my scores to show in 60 days? Also what NEGATIVE affect did taking out the car loan (40k) and the 50k private loan Have when they report this month, note they should have one payepment shown on each by the time I apply in May. Did paying off my 3k loan help or hurt? Does the net positive score from helping my util outweigh the new installment loans? I m guessing yes. I used the myFICO calculators and tried to simulate paying off my massive hundreds of thousands of student loan installment debt....only bumped my score 30 points, but simulating paying down 9k of my 13k in CC debt increased it 50-60 points it says. From what I've been told adding or closing installment loans doesn't have a major impact on scores compared with revolving debt changes.
ALSO @24% util will paying it down to 20% or stretching to 15% make any significant difference?
Long and short....do I need to be worried my scores will be < 705 in 60 days??? And if not, what's the chance they will be 720 or more.
thanks so much guys/gals
@Bostonredsox wrote:Hi guys, first time poster.
planning on a physician mortgage this spring. Spoke with broker sent in app. They ran my fico scores, 711/708/697. For their physician loan program, they will give mortgages for 417k-650k with a score over 660 ( they take the middle score) with 10%down, over 705 with 5% down and over 720 with 0% down. so our planned home is 405k, meaning I need 20k down, which I didn't have. So mortgage company allowed me to take out a unsecured physicians loan through them for 50k, with the notion that I can apply for the mortgage in 60 days as they will ask for my bank statements for the past 60 days and at that point it will look like I had 50k saved up and were all good for down payment. so I did that.
small snag. I can't apply for mortgage formally for 60 days, closure takes 30, credit score only good for 90 days. So they will have to rerun my credit scores prior to the formal app in May. What of theybe dropped 9 points to 702/699/688?? Now I have to put 10% down! an extra 20k I don't have.
Kickers. I bought a new car about a week or so before we mad the purchase on this house. We honestly had found nothing we liked and had essentially given up when we found a house we love that is in foreclosure. We came to an agreement with the seller for a price that's over 250k less than it sold for 10 years ago, and over 175k less than it's currently assessed for. So needless to say, we want this house.
so. I got super paranoid my scores will have taken a huge hit from the initial mortgage, auto loan and personal loan inquiries plus the new installment loans on my reports.
i ran my myFICO reports today. I got scores of ex/eq/tu of 682/669/706
questions.
1). How are the myFICO scores so much lower 1 month after they were run by the mortgage lender? Literally nothing has changed on them except a few inquiries and on th. Current reports, no individual report has more than 4, ex only has 2. Are there calculators just a bit different and perhaps my scores are closer to what they were a month ago? The 50k loan and carload haven't even reported yet, They would have run mortgage enhanced FICOs you dont get those from MF, there are actually 49 models in each FICO year model. Here you get a EX08, EQ04 and TU98..
2) i have one acct with a 2 30 day lates in two reports eq and tu, but it's about 4.4 and 5.5 years ago respectively. The ex report as those plus one other 30day late on an acct of my wife's I was apparently a co signer on, trying to get that off, but it was 2 years ago, both of these accounts bave been paid off and closed for over a year. Over 3 years on the first one I noted. 30-60 day lates are considered minor and do not affect you past 2 years.
3) the #2 detriment on eq and ex and #1 on tu is my credit utilization rate, it was 67% on ex (my one CC apparently doesn't report to them) and 85% on the other two. Everything I've read said hitting these hard and fast right now will maximize my score when it's rerun by the mortgage company in roughly 60 days. My balances were as follows..... 439/750 - 4,000/5,000 - 9,500/10,000. So I did a few things, namely using some of hat 50k personal loan to pay off debt. I got the low $750 card, a lowes/homedepot store card, limit increased to 3,750. That is now 392/3,750. I got e0the 5,000 increased to 6,100 AND paid off 2,500 of the balance. It's now 1470/6100. I hit the big card hard, paying off 6,500 and it's now 2850/10,000. So my total util is now 10%, 24% and 28% on the cards respectively! with a total combined util of 24%, again down from 85%. For ex which the 10,000 card doesn't report to, my util went from 65% to 19%. I also spoke with both companies whose limits were increased, ensuring they did not do a hard pull to raise the limit, which they don't.
i also took 3k and paid off my old car loan in an attempt to decrease monthly payments given the new car loan.
SOOOOOOO oh wise ones......givem the large impact I made on my credit util which from what my reports say was really hurting my score....what kind of bump can I expect my scores to show in 60 days? Your reduced util is going to be the best bang for the buck you will gain some points there for sure. Also what NEGATIVE affect did taking out the car loan (40k) and the 50k private loan Have when they report this month, note they should have one payepment shown on each by the time I apply in May. Did paying off my 3k loan help or hurt? 2 new instalment loans should not cost that many points and paying one off will help. Does the net positive score from helping my util outweigh the new installment loans? I say yes. I used the myFICO calculators and tried to simulate paying off my massive hundreds of thousands of student loan installment debt....only bumped my score 30 points, but simulating paying down 9k of my 13k in CC debt increased it 50-60 points it says. From what I've been told adding or closing installment loans doesn't have a major impact on scores compared with revolving debt changes. True
@ALSO @Anonymous% util will paying it down to 20% or stretching to 15% make any significant difference? Less than 20 may add some more points the lower the util the more points can be gained that is a fact.
Long and short....do I need to be worried my scores will be < 705 in 60 days??? And if not, what's the chance they will be 720 or more. I think you will be just fine
thanks so much guys/gals
