Ok - I have been working to increase my score for the las...

[Anonymous]

Ok - I have been working to increase my score for the last year or so. I currently have $118,000.00 in student debt (vet school) and about $20,000 left in credit card debt. I left vet medicine for the much more lucrative career of medical device sales and have been able to pay off debt quickly.

I am married and just called my credit union to get prequalified for a mortgage. I was informed by my loan officer that they use the middle number of all three credit scores to determine your score (mine is 728 today). Because I am married and my husband has a significant income they will use both and look at the lower of the two middle numbers (my husband has only been in the states for 5 years so his middle number is 698 - today anyway).

Here comes the surprising part - she told me that my (our) FICO score has nothing to do with my interest rate. She stated that the interest rate is dependant on the plan you choose (i.e. 30 year fixed, 5 year ARM, interest only, etc.). I then asked what they used the score for and she stated that it only determines how much documentation will be required for loan approval (including flexibily on increasing income without proof). She said if I could bring his middle score up to 720 that they would simply call his employer to confirm that he works there and that was about it.

Is it me? It is her? I am retarded? I thought my credit score played a much bigger role in obtaining a great mortgage.

Anyone??? 

[Anonymous]

your loan officer either doesnt know what she is talking about (less likely), or is trying to buffalo you into a higher rate to boost her commission (more likely).

[Anonymous]

So what can I do to combat this problem? I read Fico 101 but I need more information to begin an educated dialog with her.

Is there a place, that I can reference, that shows that my scores absolutely affect the interest rate I should be getting?

On a side note, I was just getting pre-qualified (I gave her my scores as of today with no personal info).

Thanks!

[Anonymous]

i would look into a different lender.  i never do business with someone who doesnt treat me right from the start, whether it is a bank, a local shop, a restaurant, etc.

[Anonymous]

My thought..... Part truth and part smoke and mirrors. My daughter in law is a broker.... I'll call her with these q's for you.

[Anonymous]

There is some truth to this.  It really depends on the loan program that you are going for.  Mine is a special community loan program that if I meet the minimum threshold for scores (and all of the other requirements) then I qualify for the set rate that would not change even if I were 20 points higher. (I have read the program guidelines myself and was married to a broker for years).

I have, however seen other programs in the past that were more score dependent for the rate and it does impact on certain programs how much documentation they want from you (Full doc if they are low).

Where I find that it helps is that the TLs are still going to be somewhat scrutinized by underwriting, so although I have met my score requirements, I am getting it as cleaned up as possible.

I would get your lender to fully explain the type of program she is using for you.

I am sure there are others with more knowledge, but just sharing my experiences

Message Edited by LEBR4113 on 07-03-2007 06:25 AM

[MidnightVoice]

I would add that with your joint scores you are close to where some lenders will be giving you their best rate anyway, especially if you are putting down a high down payment on the house