720 FICO is SOOOOOOOOOO IMPORTANT!

[64met]

I will not get into my specific situation and the circus my loan application has become; what I will say is I have a great job; great income; 10% down with reserves in the bank; my current home is sold and never late pmt. on any debt!  My problem was the CC debt I had; I paid off! Problem was by doing this AND cancelling the accounts my score dropped to 715; guess what.... since my new loan is a  jumbo... the underwriter is basically (due to subprime mess) telling my lender... I need 720 to qualify.. this after I received 2 pre-approval letters 45 days ago when we contracted the house.  So... we are now looking at options to rapid re-score above 720.  So... if you are house shopping... you better have your FICO dialed in.. to avoid a similar situation! 

[haulingthescoreup]

Can you re-open any of these closed accounts? Especially if you closed any that had really old original opening dates.

In the meantime, if you haven't already, pay off all but one of your current CC accounts, and pay that last one to 5% of its CL. Once your payments have posted to your various CC accounts, either wait for them to update, or if you're running out of time, try rapid re-score. I think it's $30 per TL (tradeline) per bureau, so it gets pricey fast, but it might be enough to get you back over the good side of 720.

So sorry to hear that this happened to you!

note--just re-read and saw that you're working the rapid re-score angle--good luck!

[64met]

Hauling... as  Wednesday this week; I have 0 CC debt!  I paid my discover down to $23.00 (just to be a smart a**) CL of $15,000.  We also found a very old CC we didn't cancel in my Wifes name; lender suggested (we did) add me as a co-borrower; 0 balance; 8k limit.  What is more alarming at this point is we are already 4 days past the close date of our new home!!!! The lender said and I am quoting .... the underwriter is very busy AND since your loan is not going anywhere and all the other loans (subprime) are re-setting my loan is NOT a priority!  My agent is on top of this and unless we get this all dialed in today... we will be moving to another lender who does his own underwriting!  So, the wait continues and they will be running the re-score today as well.  MY DTI is 35% (with the new house) great credit history, etc... just NEVER should have cancelled the other CC. 

When this is all completed.... I am getting a stiff drink!!!!!

ThxS!

[Anonymous]

I hope this is a lesson learned-

Congrats on paying off the debt and good luck on the loan

[Anonymous]

OMG, flashback!!!

FYI, back in 2000, Finished our house, used some cards to complete.  Decided to pay off cards and have one payment aside from mtg -- Lender told us to close our cards before (bad move) he disbursed funds -- Score fell over 350 points, got universal decrease and closure on the rest of the cards that we didn't include.  We had over 120k in available credit, all long history.  

Don't ever close your cards.  When we did, the other lenders thought we were in trouble.  We were never late.  I sent so many letters trying to fix - after 4 years I gave up.  They are just now falling off our credit.  Some of the lenders reversed negs after they received the payoff, but, 3 did not.

[64met]

Well; after another very long day filled with anxiety and stress we FINALLY closed on our new house!  In the end, everything worked out.... I have learned my lesson (and I just wish I would have found this site b4 learning the hard way). Oh well, good news is NO MORE CC DEBT!!  (Just keep the freaking things open).

[haulingthescoreup]

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@64met wrote:

Well; after another very long day filled with anxiety and stress we FINALLY closed on our new house!  In the end, everything worked out.... I have learned my lesson (and I just wish I would have found this site b4 learning the hard way). Oh well, good news is NO MORE CC DEBT!!  (Just keep the freaking things open).

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Whew!

Congrats, and enjoy your new home. Hope your lender learned something too!

[MidnightVoice]

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64met wrote:

  My problem was the CC debt I had; I paid off! Problem was by doing this AND cancelling the accounts my score dropped to 715;

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I talked to a Chses CCC CSR who was given the same advice and had the same problem!!

So you are not alone

[smallfry]

IF you can qualify for an account try to open with Navy Federal. Pentagon Federal is another good option so as to not be at the mercy of these blood suckers when the time comes to get a home mortgage.