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Regular Contributor
Settemio
Posts: 222
Registered: ‎01-08-2011

BK falls off in March, what can I expect?

Hi all. Just checked my EQ score... 716. I have 5% util. 30 day late that is 6yrs old now. But I do have BK listed. It will fall off in two months, March... What kinda score bump could I see when it falls off? I am going to be buying a new house this spring and I know the better rates are for 760 scores and above...

 

Thanks

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: BK falls off in March, what can I expect?


Settemio wrote:

Hi all. Just checked my EQ score... 716. I have 5% util. 30 day late that is 6yrs old now. But I do have BK listed. It will fall off in two months, March... What kinda score bump could I see when it falls off? I am going to be buying a new house this spring and I know the better rates are for 760 scores and above...

 

Thanks


No real prediction as far as scores are concerned, but from my experience what I have seen being a Broker, your scores will change, and not always for a positive increase.

I have seen very few negative score reactions, only twice in your type of situation and was only a few points lost.

 

Majority have been score increases ranging from 3 points to about 65 points.

 

As far as rates are concerned, it depends on the Lender. I have Lenders that accept 720 as their top tier rate and I have Lenders that want a 740 for their top tier rate. I do not have any Lenders at this present time that would require a 760 (not saying they dont exist).

 

Your scores being in the 700's will really only matter on rate using a Conventional Loan.

Good Luck
May all your dreams and wishes become a reality!
Regular Contributor
Settemio
Posts: 222
Registered: ‎01-08-2011

Re: BK falls off in March, what can I expect?

Thanks for the reply. FHA wont work because the limit in texas is only like 272k. So I hope I get a 25 point bump then...
Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: BK falls off in March, what can I expect?

If you shop Lenders you may not require but about 10 points. If you cant find a Lender directly on your own take the time to talk to a Broker who deals with many Lenders.

Good Luck
May all your dreams and wishes become a reality!
Regular Contributor
Settemio
Posts: 222
Registered: ‎01-08-2011

Re: BK falls off in March, what can I expect?

Actually just found out that score is my lowest of the three CAs. My Middle score is 732 with TU. Do the lenders look at the middle score, or the lowest?

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: BK falls off in March, what can I expect?

You can only go by a FICO score. Where did you pull your reports from?

 

If you purchased your scores with the Credit Bureaus directly then most likely they are not FICO scores. The only Credit Bureau who will sell you your FICO credit score is Equifax.

 

For a closer reference to your middle score pull both your scores from MYFICO, that would give you a little more of an idea where you stand.

Good Luck
May all your dreams and wishes become a reality!
Regular Contributor
Settemio
Posts: 222
Registered: ‎01-08-2011

Re: BK falls off in March, what can I expect?

[ Edited ]

These scores are from here at MyFico...

 

EQ - 716

TU - 732

EX - 740 (I know this score becuase I applied for Citi card and they told me my score)

 

So they do then use the middle score?

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: BK falls off in March, what can I expect?

[ Edited ]

Settemio wrote:

These scores are from here at MyFico...

 

EQ - 716

TU - 732

EX - 740 (I know this score becuase I applied for Citi card and they told me my score)

 

So they do then use the middle score?


Yes they use the middle score.

As I mentioned earlier, there are lenders who are using 720 and 740 scores for their best rate.

 

You should have a good little boost once your BK is removed, pending what ever else in on your reports. Very hard to determine how much of a boost but in my experiences I have seen boost from as little as 5 points to as much as 95 points that I can remember (I had to look over my files for a little more accuracy).

 

Since your not planning on purchasing until spring, just wait until the BK is removed and go from there. If you decide you prefer not to wait just shop Lenders who accept a 720 score for their best rate.

 

I cant predict if rates will change from now until the time you are ready, but I can tell you that rates have been creeping upward for conventional loans.

 

Another thing to take into consideration, some housing markets have been increasing in their selling prices. Many areas I deal with prices for homes have increased 10-25K in the last 6 months.

Good Luck
May all your dreams and wishes become a reality!
Regular Contributor
Settemio
Posts: 222
Registered: ‎01-08-2011

Re: BK falls off in March, what can I expect?

Wouldnt it be better not to have the BK when the lenders see my reports?

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: BK falls off in March, what can I expect?

The only thing that is looked at when you have a BK on your report, is the discharge date, the type of BK, how long its been since (waiting period), and have you reestablished credit responsibly. Those are the main factors.

 

If all the above apply to your situation, which I would believe they do from your scores, you would have no issues applying now. The only issue would be to find a Lender who offers their best rate for a 720 mid score. Possibly even a 740 mid score as you may be able to boost your score a few points to reach the 740.

 

What I would do is buy a new credit report with the most current date, and bring it with me to sit and talk with a LO or Broker. Let them look at your report and see what they advise.

 

Personally I would use a Broker for several reasons, but I am not totally anti LO. You have to be happy with your LO or Broker. Just remember 99% of the time the Broker is the cheaper way to go for your entire loan package overall.

Good Luck
May all your dreams and wishes become a reality!

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