topic Re: OMG!!!!!!!!! 15 point DECREASE?????? in Mortgage Loans

OMG!!!!!!!!! 15 point DECREASE??????

FSUGAPEACH — Thu, 16 Feb 2012 14:23:15 GMT

Just pulled our Equifax report from Myfico (of course we did not receive an alert!) and DH Equifax midscore has dropped to 628 from 644? His total revolving credit from 10 days ago increased by $30.00. That would cause a 15 point decrease? LO is repulling our credit TODAY to make sure that all of the dispute remarks are removed and now this????? I give up!

Re: OMG!!!!!!!!! 15 point DECREASE??????

mlearma — Thu, 16 Feb 2012 14:37:26 GMT

It is so crazy how the scores worked. I used my credit card (1000 limit) to buy some Christmas gifts....paid them off after two statements. Because my utilization went from zero to $800 my score dropped 40 points. When I paid in full I got the full 40 points back.

Same thing with my house....I sold my house in 2011...mortgage paid in full. My score dropped 25 points. What?

The reasons are crazy...but have learned it has to do with utilization, lines of trade, and number of open accounts. We have a student loan (1), two car loans and 2 credit cards. The negative comments are "too many revolving accounts" as a reason bringing our scores down.

I like the 14.95 program per month on freecreditscore.com for experion. It' s not real FICO...but you can check and refresh your report whenever you want and see how when something updates your score changes. You can refresh that every week if you want and learn how things change.

We are closing on our new house next week. Thanks to myfico.com and freecreditscore.com I am able to buy my dream home. It took me 18 months, but went from 521 middle score to 691.

Re: OMG!!!!!!!!! 15 point DECREASE??????

FSUGAPEACH — Thu, 16 Feb 2012 14:47:31 GMT

I just don't know what to do. I am waiting very impatiently for the LO to call me. I don't think we have enough time to pay anything off because appraisal code has to be ordered within 15 days ;( ;(

Re: OMG!!!!!!!!! 15 point DECREASE??????

mlearma — Thu, 16 Feb 2012 14:50:18 GMT

What kind of loan? VA is 620 and FHA is either 620 or 640 depending on the lender. You may be okay.

USDA is a lower score too.

Re: OMG!!!!!!!!! 15 point DECREASE??????

Anonymous — Thu, 16 Feb 2012 14:56:22 GMT

@mlearma wrote:
It is so crazy how the scores worked. I used my credit card (1000 limit) to buy some Christmas gifts....paid them off after two statements. Because my utilization went from zero to $800 my score dropped 40 points. When I paid in full I got the full 40 points back.

Same thing with my house....I sold my house in 2011...mortgage paid in full. My score dropped 25 points. What?

The reasons are crazy...but have learned it has to do with utilization, lines of trade, and number of open accounts. We have a student loan (1), two car loans and 2 credit cards. The negative comments are "too many revolving accounts" as a reason bringing our scores down.

I like the 14.95 program per month on freecreditscore.com for experion. It' s not real FICO...but you can check and refresh your report whenever you want and see how when something updates your score changes. You can refresh that every week if you want and learn how things change.

We are closing on our new house next week. Thanks to myfico.com and freecreditscore.com I am able to buy my dream home. It took me 18 months, but went from 521 middle score to 691.

CMS (Credit Monitoring Services) are great for seeing what information changes on your credit report. Their shortfall is in the fako scores they provide, and the fako comments associated with those scores. Remember that a change in fako scores does not equal a change in true FICO scores. When a fako goes up or down, a FICO may stay the same, or go down, or up! They don't follow the same patterns because they are not built on the same algorithms. Same thing with the comments. Heeding comments or following advice given from a fako site can, and will, damage FICO scores.

I'm a fan of CMS, use 'em myself, but I've learned to ignore scores and even score changes on fako sites. Just thought I'd bring that up in case someone else reading this post might not be aware. And for any of you out there, here's a great guide to the different Credit Monitoring Services.

Congratulations, mlearma, on your hard work and on your new house! Super woot-woot party time!!!

Re: OMG!!!!!!!!! 15 point DECREASE??????

Anonymous — Thu, 16 Feb 2012 14:58:51 GMT

@FSUGAPEACH wrote:
I just don't know what to do. I am waiting very impatiently for the LO to call me. I don't think we have enough time to pay anything off because appraisal code has to be ordered within 15 days ;( ;(

Keep us posted - we're keeping our fingers crossed for you!!!

ETA: Did any of the reasons for DH change? I.E. the statements under "What's Helping Your FICO Score" and "What's Hurting Your FICO Score?" Sometimes that's a helpful clue as to what's going on.

Re: OMG!!!!!!!!! 15 point DECREASE??????

FSUGAPEACH — Thu, 16 Feb 2012 17:45:32 GMT

Thanks guys. We use CCT (credit check total) to monitor changes and I use Myfico for true Equifax scores. There was a drop in his FACO score with CCT which triggered my response to pull a Myfico score which in turn showed the score difference. I know the issue is a mix between removing the dispute comments as well as overall credit utilization. I am STILL waiting for the LO to call me. My question to him is how soon can we pay off the credit cards and see a score increase. Im just not sure if I should continue to work with this lender knowing he can't do anything under 640 or begin searching for a lender that will do a 620. So many questions and so stressed

Re: OMG!!!!!!!!! 15 point DECREASE??????

Anonymous — Sat, 18 Feb 2012 16:14:39 GMT

your pre approvial is good for 90 days before they re-pull credit..if you close before 90 days you will be fine..

Re: OMG!!!!!!!!! 15 point DECREASE??????

FSUGAPEACH — Sat, 18 Feb 2012 16:21:19 GMT

The LO called and said for us to pay down our total utilization by 50% and then he will do a rapid rescore (free of charge because he said he believes in this file??) We paid card #1- CL was 750 balance was 600 we paid it down to 250 Card #2-CL was 750 we owed 700 and paid down to 200 Card #3- CL was 400 we paid down to 200. Now we are waiting on the results of the rapid rescore. According this his rapid rescore analysis we should receive a 40 point increase????? Fingers crossed!