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10-29-2011 07:28 AM
I did a Pre-Qual for a mortgage, found a house, put down earnest $ & got purchase contract only to be told by lender I now need to raise my score by about 30 points or come up with 6.5% more down. (my score had actually went up 3 pts since we talked 2 wks ago & I got the pre-Qual...so, he lied the 1st time).
I have 10 credit cards that are at 87% util right now & will be able to pay them down in the next week to 6 cards @ 28% utilization and 4 cards @ 45% util.
Scorewatch simulator shows this should raise me 40-60 points.
Any help or ideas? I read about the credit card co reporting dates & maybe I can get lender to have them resubmit new scores. I'm scared to shop another lender because it can hurt my score. I'm supposed to close in Dec.
10-29-2011 08:29 AM
I'd get your CC balances down further. Also, more $0 balances you have the better (though I'd leave 1 with a very small balance). Plan your statement dates. Most CCs report around your statement date and will report the balance you had on that date. I'd do a spreadsheet ranking the soonest statement dates to the furthest, and pay the soonest to $0 ASAP. You would still be dinged heavily with 45% and 28% individual util. You also want to time the statement dates because it costs $$$ to have a rapid rescore done.
Rate shopping won't hurt your score if you do it within a general time frame of 30-45 days. FICO ignores all but one mortgage inquiry during that period.
10-29-2011 09:23 AM
Thank you!! I will pay these down (the ones with nearest stmt date to $0) then shop around after they hit my report. Most of the cards have stmt dates in the next week or two & I called to verify date they report to cb .
My median score is a 555 right now & I need at least a 580 for FHA but if I could get to 620 that would be even better (I know I'm probably dreaming for a quick recovery). This is a first home purchase & realtor said they could do an extension for financing but I don't know how long. This is so disheartening to be blind-sided by the mortgage lender at the last minute. (I can only blame myself for not being credit wise tho)
10-29-2011 07:00 PM
Did the lender explain the difference between a pre-qual and pre-approved?
Pre-qualified - they take the information you give them and say you are pre-qualified. The lender does not pull your credit.
Pre-approved - they pull your credit and can give you a better picture of what you will qualify for at that moment.
Pay as much as you can on the cc's...if you can pay them off, pay them off!
I hope things work out for you.
10-29-2011 07:33 PM - edited 10-29-2011 07:35 PM
I looked up the difference after we spoke & new it wasn't a pre-approval but he did pull my credit report from Equifax & told me my score over the phone (I had 553 mid & he said they go as low as 540 but most places are 620)....told me my debt ratio and how high they can go for debt ratio (20% more than where I was at). We emailed several times & I asked him if there was anything else that would make me not qualify & he said as long as my income verified (and it did) everything would be ok. After I emailed purch contract, W-2's, ck stubs, tax returns he sent an email saying "with underwriter's becoming more conservative...you need a 580 mid FICO to go over 90% now" (wow...it changed that much from Oct 4 to Oct 28???)...So, I could come up with 6.5% more down or he can send me a letter to get my earnest money back. No big deal to him but now I have a contract in the works & need to get my son in a better school system. I HAVE to get my score up!!!
10-31-2011 07:37 PM
So excited to see how this turns out!! Paid 3 cc's completely off & the other 7 down to 27-33% utilization. I'm praying for a good increase in my score (my cards were 87-95% utliz).
I think I should've hit all cut-off & reporting dates for all cards. If not I've heard you can request a current statement (after pmt posts) from cc company, find out what agency they report to & ask them to provide the client id# so you can fax info in to have cb update it. Anyone heard of this before??
10-31-2011 07:42 PM
Hi, Haw - yep that's called Rapid Rescore. Pretty common and the mortgage lender should NOT charge you to do this. They pay.
I hope you get the points you need!
10-31-2011 07:44 PM
Thanks! I read a little about that on here...I'll have to look into it again. So much GOOD info on here! I have a friend at work ready to "get her act together" too!!
10-31-2011 08:22 PM
I'm going to take a wild guess and say you're working with a national lender who's initials are WF? Sounds like the same old story from those guys...