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...
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.