topic Re: I NEED SOME SERIOUS ADVICE in Mortgage Loans

I NEED SOME SERIOUS ADVICE

bsal — Wed, 01 Jul 2009 20:30:46 GMT

Hey guys i need some serious advice , i recently been in search for a new home, first time home buyer, my credit score is TRANS 698, EQ 718, I WAS PREAVROVED FOR 225K ON A HOME, my question is would it be better for me to go threw a mortgage broker who has me in programs that will help me with my closing cost and all that , or should i go threw a credit union my navy fed, again i was preaproved for 225k at 5.6 %? AND my next question on my credit report when i firs started i only had my student loan with a balance of 955.54, since then i have a car loan 21k, i only kept my student loan and never paid it off in full cause i wanted to show that i was paying on time witch will hike my scores up, do u think i still need it now since i have my car loan showing on my report, should i just pay my school loan off since i dont need it anymore to help my score, or if i paid my school loan off in full will that lower my score since its been my longest history on my report, i know I'm rambling but i need a lil advice from the experts

Re: I NEED SOME SERIOUS ADVICE

ShanetheMortgageMan — Wed, 01 Jul 2009 20:38:37 GMT

Who you'd like to go with is a personal preference of yours, great service can be received from any bank, mortgage brokerage firm or credit union, but not every person provides great service. However if you have been pre-approved already, who was that by, and why are you continuing to look for other options after you've been pre-approved?

As far as the credit score question, your scores are pretty good, so unless you don't have many open trade lines right now, and can spare the $900 and still get approved for the mortgage, you could pay it off without worrying about any negative affect on your credit to the point where you would no longer be approved for the mortgage. However the one thing you did mention is that you have obtained a car loan since the credit report was run, if the loan officer isn't aware of that car payment then they will need to re-approve you with that car payment included in the debt to income ratio calculations. If that is the case, I'd suggest you alert the loan officer of the car payment prior to paying off the student loan, as you wouldn't currently know if you needed that additional $900 or not in reserves in order to qualify.

Re: I NEED SOME SERIOUS ADVICE

bsal — Wed, 01 Jul 2009 23:19:30 GMT

thank you for responding to my questions, i did in-fact let my loan officer know that i do have a car note and he said i was still pre-approved i guess he ran my credit again, i guess I'm just trying to get as less bills as possable knowing that im bout to get a mortgage so i wanted to pay off my school loan but i thought if i paid it off that will lower my score since thats my longest running history, so your saying it wouldn't hurt my score at all if i pay off my school loan? and so that way the only thing that will be showing on my score if i do pay it off is my car loan and mortgage if i get this house

Re: I NEED SOME SERIOUS ADVICE

Anonymous — Fri, 03 Jul 2009 16:37:48 GMT

@bsal wrote:
i wanted to pay off my school loan but i thought if i paid it off that will lower my score since thats my longest running history, so your saying it wouldn't hurt my score at all if i pay off my school loan? and so that way the only thing that will be showing on my score if i do pay it off is my car loan and mortgage if i get this house

Go ahead, that history will contribute to your score for another 7-10 years. (7 if negative, 10 if positive) Now you have another open installment loan you'll still have that in your bag of credit. Congrats on being able to pay it off

Message Edited by rmily on 07-03-2009 11:37 AM