topic Re: Hard Time Raising Mortgage Scores in Mortgage Loans

Hard Time Raising Mortgage Scores

Anonymous — Tue, 16 Jun 2020 12:42:01 GMT

Hi All

Fast Help Needed. Any suggestion is welcomed!!

Current FICO 8 SCORES 629-643-675

Current FICO Mortgage 584-605-639

5 cc

Capital one 90/750

Merrick 362/1800

Mercury 330/2200

NFCU 1024/2600 (2-30 days lates- Feb/March 2020)

Commonwealth 1032/3800

2 loans

P. Fed 4100/4400 (New loan in Nov 2019)

NCFU CLOC 2495/5000

Student Loans

60k - all in deferment(2-30 day lates in 2017)- (4- 30 day late 2012)

Baddies

8 medical collections paid 700 of 811.00 off on May 26th.

1 medical collection 4500- (0.00 paid on it)

What is my next best step to move the needle on mortgage scores?

I have about 700.00 I can put toward some debts. Where should it go?

Thanks in advance

Re: Hard Time Raising Mortgage Scores

Anonymous — Tue, 16 Jun 2020 13:49:28 GMT

@Anonymous wrote:
Hi All
Fast Help Needed. Any suggestion is welcomed!!
Current FICO 8 SCORES 629-643-675
Current FICO Mortgage 584-605-639
5 cc
Capital one 90/750
Merrick 362/1800
Mercury 330/2200
NFCU 1024/2600 (2-30 days lates- Feb/March 2020)
Commonwealth 1032/3800

2 loans
P. Fed 4100/4400 (New loan in Nov 2019)
NCFU CLOC 2495/5000

Student Loans
60k - all in deferment(2-30 day lates in 2017)- (4- 30 day late 2012)

Baddies
8 medical collections paid 700 of 811.00 off on May 26th.
1 medical collection 4500- (0.00 paid on it)

What is my next best step to move the needle on mortgage scores?
I have about 700.00 I can put toward some debts. Where should it go?
Thanks in advance

Your score is being brought down by the late payments - especially the recent ones and there's not much you can do to fix that unless the c ompanies agree to delete them. Its not impossible so maybe try reaching out and asking for a deletion. How old are your collections?

Re: Hard Time Raising Mortgage Scores

Anonymous — Tue, 16 Jun 2020 15:47:23 GMT

The 4500.00 is a year old.

All others are 2 to 3 years old. I will call and ask them to delete the lates on the credit cards. They are very recent lates. Covid realted.

Any other suggestions. Thank you

Re: Hard Time Raising Mortgage Scores

NC_Mtg_Loaner — Tue, 16 Jun 2020 16:36:09 GMT

when do the student loans come out of deferrment?

I would speculate that beginning to show on-time payments to these in your 'future' history will help boost your score while you work towards paying down some of those credit cards. (assuming you want to try the AZEO method)

Re: Hard Time Raising Mortgage Scores

Anonymous — Tue, 16 Jun 2020 19:22:11 GMT

Yes. I want to try the AZERO method. I am not familiar with it.

The student loan dont cone out of deferment until last this year

Re: Hard Time Raising Mortgage Scores

NC_Mtg_Loaner — Tue, 16 Jun 2020 21:59:36 GMT

AZEO--All Zero Except One-----credit card balances that is.

I would see if you can get started paying those student loans back now if possible. Any/Every lender will ask to get updated payment information and by paying them now it should begin to boost your score---algorithms (credit scoring) don't like student loans in forbearance. I could be wrong about that but I don't think I am.

Re: Hard Time Raising Mortgage Scores

AllZero — Wed, 17 Jun 2020 04:25:50 GMT

@Anonymous wrote:
Yes. I want to try the AZERO method. I am not familiar with it.
The student loan dont cone out of deferment until last this year

@Anonymous The older scoring models (EX2, TU4, EQ5) like more accounts reporting zero balance. In addition, the sweet spot is aggregate utilization between 1-9%, individual utilization between 1-29%. If you can squeeze a little more than $700 available, I would throw it at:

Capital One $90

Merrick $362

Mercury $330

Granted, you will still have one account account reporting ~39% individual utilization. You also have 40% of revolving accounts (2/5 cards) reporting a balance. Ideally, you want ~20% of revolving accounts (1/5 cards) reporting a balance.

Re: Hard Time Raising Mortgage Scores

Anonymous — Wed, 17 Jun 2020 10:54:59 GMT

@AllZero @Thank you for the response

Do you think this will help my Mortgage scores come up? I can pay this amount today.

Re: Hard Time Raising Mortgage Scores

AllZero — Wed, 17 Jun 2020 15:00:58 GMT

@Anonymous wrote:
@AllZero @Thank you for the response
Do you think this will help my Mortgage scores come up? I can pay this amount today.

@Anonymous . Your scores will rise. I'm not quite sure on how many points.

What MMS Mortgage Middle Score are you trying to achieve?

Re: Hard Time Raising Mortgage Scores

Anonymous — Wed, 17 Jun 2020 15:40:44 GMT

I will need a 620 middle score for the mortgage at the very least. They really want a 640.

Re: Hard Time Raising Mortgage Scores

AllZero — Wed, 17 Jun 2020 16:17:28 GMT

@Anonymous . What is your time frame for application?

Re: Hard Time Raising Mortgage Scores

Anonymous — Wed, 17 Jun 2020 16:35:30 GMT

First and middle of July.

Today I paid off

Mercury 330.61/2060

Merrick 367.72/1800

Capital one 58.29/705

What I have left

Navy fed 975/2600

Community CC 1087/2500

Park Loan 4100/4800

Navy Fed CLOC 2495/5k

Should I request limit increases?

What the next best step?

Thank you in advance.

Re: Hard Time Raising Mortgage Scores

AllZero — Wed, 17 Jun 2020 17:36:27 GMT

@Anonymous wrote:
First and middle of July.
Today I paid off
Mercury 330.61/2060
Merrick 367.72/1800
Capital one 58.29/705

What I have left
Navy fed 975/2600
Community CC 1087/2500
Park Loan 4100/4800
Navy Fed CLOC 2495/5k

Should I request limit increases?
What the next best step?
Thank you in advance.

@Anonymous That will be a tight time frame.

Also, check with a loan officer about the recency of those 2 delinquencies if it may affect your application.

Those are your 5 open credit cards, correct?

From a scoring perspective (see example chart), if you have available funds, you want to zero out Capital One and Commonwealth. Reduce the utilization of the NFCU card to $754 (maybe less to allow for accrued interest) which will have you exactly at 29% individual utilization. You will be at ~7% aggregate utilization.

You'll have to look at your budget and what you need for a down payment too.

If you are eligible for Soft Pull credit limit increases, that would be great to help with the utilization padding.

Example below:

Card	Balance	CL	UTI
Capital one	0	750	0%
Merrick	0	1800	0%
Mercury	0	2200	0%
NFCU	754	2600	29%
Commonwealth	0	3800	0%
Total	754	11150	7%

Re: Hard Time Raising Mortgage Scores

AllZero — Wed, 17 Jun 2020 17:40:36 GMT

@Anonymous wrote:
First and middle of July.
Today I paid off
Mercury 330.61/2060
Merrick 367.72/1800
Capital one 58.29/705

What I have left
Navy fed 975/2600
Community CC 1087/2500
Park Loan 4100/4800
Navy Fed CLOC 2495/5k

What happened to the Commonwealth from the original post?

Re: Hard Time Raising Mortgage Scores

Anonymous — Wed, 17 Jun 2020 20:12:59 GMT

Commonwealth and Community are the same card.

Re: Hard Time Raising Mortgage Scores

AllZero — Thu, 18 Jun 2020 17:00:05 GMT

I see. You have the utilization thresholds. Hope you get the scores you seek.

Re: Hard Time Raising Mortgage Scores

Anonymous — Fri, 19 Jun 2020 01:19:46 GMT

Thank you @AllZero for you help. I am paying these off as you instructed in the next 7 days.

I have 7k set aside for a down payment.

I'm hoping that between the CC balances changing and the over 600.00 in collections being paid and removed. Hopefully my Mortgage mid score will be above 620.