topic Re: Score Dropped In The Middle of Purchasing First Home in Understanding FICO® Scoring

Score Dropped In The Middle of Purchasing First Home

Anonymous — Mon, 31 May 2021 18:20:51 GMT

Hoping someone can help me understand. In March my Fico 5,4&3s were around 680. April they dropped to around 660. I was prequalified anyway, put in an offer, it was accepted. Paid for inspections, appraisal. The only thing that has changed is my Wells Fargo Loans transferred to another servicer (Firstmark). At first I thought once Firstmark reported, I would get the points back but it's reporting, this month (5/23) my mortgage scores dropped to 640. Now they won't give me my mortgage. I've had no late payments, no big purchases, nothing. We were set to close this Friday, I have 7k tied up in this deal, and I'm devastated and just want to understand why this happened.

Re: Score Dropped In The Middle of Purchasing First Home

babygirl1256 — Mon, 31 May 2021 20:33:36 GMT

Greetings Case-si . . . so sorry you are experiencing this. I can't tag anyone but please reach out to one of the mortgage experts and perhaps you can obtain some quick guidance. It will be ok, there are so many experts on this forum that will assist as that's what I have experienced over the years. Wishing you success in closing as scheduled.

Re: Score Dropped In The Middle of Purchasing First Home

House2021 — Tue, 01 Jun 2021 05:25:08 GMT

You should post this to mortgage forums, is there anyway at all to switch to FHA or is the FHA limits to low for this purchase? I'm so sorry this happened. Did your lender try to do a credit simulator to see how to get your score up? Seems unfair

Re: Score Dropped In The Middle of Purchasing First Home

Anonymous — Tue, 01 Jun 2021 05:35:10 GMT

Ok I will try that.. but I don't think FHA will work for me because I have a lot of student loan debt (150k) and FHA uses 1% instead of the income-driven payment amount which is $185 for my monthly debt which would then put me way above the DTI limit.

TBH my lender is a joke. He should have told me this weeks ago, instead of a week before closing. He didn't even tell me why I'm now being denied I just assume it's this, but I will try and get some answers out of him.

thanks for your reply.

Re: Score Dropped In The Middle of Purchasing First Home

House2021 — Tue, 01 Jun 2021 05:43:24 GMT

Case-si. FHA goes up to 56% on debt ratio, so that might help I have no idea the payment, your other debts other than student loans, if your ratios would work or not. I would talk to another lender see if you could save the deal. When I used to work as a real estate agent, I saw many deals go sideways but other lenders could sometimes save it. Maybe even homebuyer grants that, if approved, would help your debt ratio since it would be less money to loan.

Re: Score Dropped In The Middle of Purchasing First Home

Anonymous — Tue, 01 Jun 2021 07:24:45 GMT

@Anonymous wrote:
Hoping someone can help me understand. In March my Fico 5,4&3s were around 680. April they dropped to around 660. I was prequalified anyway, put in an offer, it was accepted. Paid for inspections, appraisal. The only thing that has changed is my Wells Fargo Loans transferred to another servicer (Firstmark). At first I thought once Firstmark reported, I would get the points back but it's reporting, this month (5/23) my mortgage scores dropped to 640. Now they won't give me my mortgage. I've had no late payments, no big purchases, nothing. We were set to close this Friday, I have 7k tied up in this deal, and I'm devastated and just want to understand why this happened.

@Anonymous i'm very sorry this happened to you. Were there any other changes to your file? What's the age of your oldest account? What were the B/L of the loans before & after the transfer? Did the new loans have new opening dates or were they backdated?

sorry to ask so many questions I'm not trying to be intrusive but these are answers I need to try to determine the answer to your question.

Re: Score Dropped In The Middle of Purchasing First Home

CyberChick — Wed, 02 Jun 2021 00:23:34 GMT

Oh my, what a nightmare.

I am hoping some of the experts here can offer quick resolution.

Re: Score Dropped In The Middle of Purchasing First Home

tooleman694 — Thu, 03 Jun 2021 20:40:44 GMT

How long ago did they pull your mortgage scores? and what were they

Re: Score Dropped In The Middle of Purchasing First Home

Anonymous — Wed, 16 Jun 2021 07:08:27 GMT

I was preapproved on 4/24 so it had to have been right about then.

Re: Score Dropped In The Middle of Purchasing First Home

Anonymous — Thu, 03 Jun 2021 21:23:45 GMT

The balances were the same (1600, 12,000) and they back-dated the opening dates. No other changes but the inquiry from the mortgage company which only dropped my score about one point. Sorry it took me so long to reply.

Re: Score Dropped In The Middle of Purchasing First Home

Anonymous — Thu, 03 Jun 2021 21:45:53 GMT

620 is needed Score for a conventional and 580 for FHA?

Re: Score Dropped In The Middle of Purchasing First Home

Anonymous — Fri, 04 Jun 2021 00:12:41 GMT

A lot of things factor in. If I had a bigger down payment/lower DTI it might have been different. I ended up needing a co-signer but I just got the mortgage commitment today. I'll refinance when I'm back up in the 680 range and get my dad off the loan.

Re: Score Dropped In The Middle of Purchasing First Home

Anonymous — Wed, 16 Jun 2021 19:58:46 GMT

I can’t theorize an answer to your question, if you don’t answer the questions propounded. For instance, does your oldest account turn 2 years old at about that time?

Re: Score Dropped In The Middle of Purchasing First Home

Anonymous — Wed, 16 Jun 2021 10:54:22 GMT

Sorry @Anonymous , I posted this but it was not under a direct reply to you. My oldest account is from 05, when I took out my first student loans, and this was one of them. The balances were the same (1600, 12,000) and they back-dated the opening dates. No other changes but the inquiry from the mortgage company which only dropped my score about one point.

Re: Score Dropped In The Middle of Purchasing First Home

Anonymous — Wed, 16 Jun 2021 19:59:19 GMT

@Anonymous wrote:
Sorry @Anonymous , I posted this but it was not under a direct reply to you. My oldest account is from 05, when I took out my first student loans, and this was one of them. The balances were the same (1600, 12,000) and they back-dated the opening dates. No other changes but the inquiry from the mortgage company which only dropped my score about one point.

@Anonymous I apologize I didn't see it anywhere. I must've missed it. The reason I asked was there is a drop at two years on the mortgage scores, so I was wondering if that may have been it, but your accounts are past that point so.

How many accounts do you have? and whats the age of your youngest account or did we already ask that? Sorry, I can't remember it's been a while.

i'll come back and re-read the whole thread after I catch up.

Re: Score Dropped In The Middle of Purchasing First Home

Anonymous — Thu, 17 Jun 2021 00:28:23 GMT

Quite alright! I have 25 open accounts, my youngest one being my car loan that I opened in 2015. (Student loans broken into small loans but aI make one monthly payment account for many of these) I worked on my credit for a long time, got serious and payed off my credit cards to under 3% and paid a charge off to apply for the mortgage and even with a co-signer, the terms have changed, and the sudden drop just really messed things up for me. Never would have entered into this had I for seen the score dropping, needing to ask for a co-signer etc but by the time this became clear I was already $5000 in emd plus $2k+ in inspections.

Re: Score Dropped In The Middle of Purchasing First Home

Anonymous — Sat, 19 Jun 2021 03:21:51 GMT

@Anonymous wrote:
Quite alright! I have 25 open accounts, my youngest one being my car loan that I opened in 2015. (Student loans broken into small loans but aI make one monthly payment account for many of these) I worked on my credit for a long time, got serious and payed off my credit cards to under 3% and paid a charge off to apply for the mortgage and even with a co-signer, the terms have changed, and the sudden drop just really messed things up for me. Never would have entered into this had I for seen the score dropping, needing to ask for a co-signer etc but by the time this became clear I was already $5000 in emd plus $2k+ in inspections.

@Anonymous please detail any derogatories on your record for me along with the dates please, if you don't mind, and I'm gonna go back and read through thread. I'll try to determine the what caused the drop, if I can. Usually I can, sometimes I can't.

but, the derogatory may play a part and you said you paid a chargeoff as well, please tell me all the details about that. Because paying the chargeoff could've caused it, depending on the details.

I need to know whether or not it was regularly updating and if not, when the last time it updated? If you don't mind, how much was owed on it?

@Anonymous OK I read back through the thread. OK you said they backdated the loans with the new servicer. OK that's great! Does it show payment history for the past 24 months out of curiosity?

you said the amounts were the same, but what I need to know is what percentage of the loan was paid off prior to this happening, and what percentage of the loan was paid off after the new servicer reported & the score dropped?