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Do I stand a chance for a mortgage

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Anonymous
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Do I stand a chance for a mortgage

My fico 8 mid score went from 680 to 634 overnight but my fico 2 went from 618 to 651. Lender said they needed 620 to get preapproved. But I'm concerned by the negative things it shows, my oldest accounts are my student loans the oldest is over 6 years average credit is 5 years. Also late payments on student loans of 120 days last negative was 2 years and 7 months. My only debt is 2 cards one at 42 dollars and one at 20 my student loans are in IBR with 0 payment. I have to move soon so any thoughts are appreciated. Thanks
Message 1 of 5
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RonM21
Valued Contributor

Re: Do I stand a chance for a mortgage

You probably can, assuming the scores don't dip even more. I would think your possible terms or rates could be a bit worse. You would need to be careful though, as you are right on the edge.


Total CL: $321.7kUTL: 2%AAoA: 7.0yrsBaddies: 0Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

BoA-55k | NFCU-45k | AMEX-42k | DISC-40.6k | PENFED-38.4k | LOWES-35k | ALLIANT-25k | CITI-15.7k | BARCLAYS-15k | CHASE-10k

Message 2 of 5
Anonymous
Not applicable

Re: Do I stand a chance for a mortgage

Thank you I'm assuming the change was my student loan consolidation posted but raised my mortgage score up dramatically and that's thr one I'm concerned about. My cc should post by Wednesday lowering my utilization from 41% to less than 10% which should boost it a little bit more. I don't see any stops happening I found a nice house for 81,000 was going to go 15 but wondering if I should do 30 and pay an extra payment a month but not sure
Message 3 of 5
Revelate
Moderator Emeritus

Re: Do I stand a chance for a mortgage


@Anonymous wrote:
Thank you I'm assuming the change was my student loan consolidation posted but raised my mortgage score up dramatically and that's thr one I'm concerned about. My cc should post by Wednesday lowering my utilization from 41% to less than 10% which should boost it a little bit more. I don't see any stops happening I found a nice house for 81,000 was going to go 15 but wondering if I should do 30 and pay an extra payment a month but not sure

That's a financial decision, I went 15 and now regretting it but I had a change in my financial life (going back to school to finish my undergrad) and suddenly the extra 700/month is meaningful which it wasn't previously, though not enough to make me go through the costs of refinancing it with only 2 years to push through and decent financing options on a HELOC.

 

If you're cash flush and stable than a 15 year makes sense, just be aware that changes can definitely occur heh... though I wasn't expecting a 1.5K/month expense to show up it does happen.

 

I think you'll be OK with the changes, little surprised if it was EX mid score that had such a positive change to loan consolidation (should've been neutral on EQ/TU) but hey, take the points Smiley Happy.  Ignore the FICO 8 scores, a student loan consolidation could mess with the installment utilization there but fortunately they aren't what is used for mortgages.

 




        
Message 4 of 5
Anonymous
Not applicable

Re: Do I stand a chance for a mortgage

That's why I was thinking 30 it's only a couple hundred but would rather pay extra then get into a bind and get behind. I consolidated 18 loans dorm to 1 so I guess that made a big difference. My biggest concern was length of credit and the late pays on my student loans bring enough to deny me I've wotked so hard the last 5 months to get it high enough to buy a house so my daughter has a home. Experian has always been my mid score so I just stick with tracking that. My cc utilization is a little high at 41% but one of my cards doesn't report until the 5th and I paid all but 30 of if off so should go up a little bit more. Thank you for the feedback I feel a little better now this has me so stressed out lol
Message 5 of 5
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