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Double digit credit score drop for talking with mortgage lenders. Help!

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MochiGSakura
New Visitor

Double digit credit score drop for talking with mortgage lenders. Help!

Hello, 

 

I need some help understanding how my credit score dropped double digit points from asking for mortgage loan estimates within 20 days.

 

The beginning of this month, my close friend who owns the home I currently reside in (I'm a tenant) approached me and asked if I would like to purchase his property I live in. I said, 'yes!". I've never purchased a home before. He suggested I start looking into loans and he'll work on getting an inspection so he can give me a listing price. 

 

Being proactive, I started calling a few mortgage lenders to discuss loan estimates and get a sense of my options. In my conversations with multiple (rocket mortgage, amerisave, bank of omaha, patelco, and another small bank, and a private lender), I asked for scenarios based on rates with a rough debt to income ratio (I only provided my real tax returns to 1 agency). I gave a very rough number of what the high price could be, but did not have the selling price yet (the inspection was just 4 days ago). Another big factor is, I have a co-signer who's family could gift us up to the full amount of the asking price. I felt some responsibility to not ask for the full amount from their family, so I told all these lenders that I intend to loan some amount that works with our income. 

 

A few days ago, I get emails from Equifax. I have a monitoring service with them and I learn that there were inquiries, and my credit score dropped 13 pts. I checked my history and discovered 3 activities: Factual Data, Equifax mortgage service, and Xactus LLC. The last record on my credit history was from July 29th, 2022, and that was my new credit card. I have no debt or late payments this month or last. So naturally, I'm concluding that these loan inquiries are hitting me. I don't yet have a price for the property and therefore have not yet asked for any certain amount. And yet, my score is down (805 to 792, as seen on my JP Chase account). I'm anxious and really frustrated with this. I don't know if I should talk to any more lenders. I don't have any student loans or any other outstanding loans (all paid off in 2019) or late payments. I don't know what's going on Smiley Sad

 

I just called 1 of the 3 banks (Factual Data - Patelco) in my Equifax activity report and was reassured it was just a "soft inquiry", and that I should come to this forum to ask and try to understand. I'm planning to continue calling the other 2/3 banks, but I'm writing this now to see what people think and suggest. 

Message 1 of 11
10 REPLIES 10
FireMedic1
Community Leader
Mega Contributor

Re: Double digit credit score drop for talking with mortgage lenders. Help!

Is the score from EQ Vantage? I believe thats all you can pay for. If so ignore it.


Message 2 of 11
SouthJamaica
Mega Contributor

Re: Double digit credit score drop for talking with mortgage lenders. Help!


@MochiGSakura wrote:

Hello, 

 

I need some help understanding how my credit score dropped double digit points from asking for mortgage loan estimates within 20 days.

 

The beginning of this month, my close friend who owns the home I currently reside in (I'm a tenant) approached me and asked if I would like to purchase his property I live in. I said, 'yes!". I've never purchased a home before. He suggested I start looking into loans and he'll work on getting an inspection so he can give me a listing price. 

 

Being proactive, I started calling a few mortgage lenders to discuss loan estimates and get a sense of my options. In my conversations with multiple (rocket mortgage, amerisave, bank of omaha, patelco, and another small bank, and a private lender), I asked for scenarios based on rates with a rough debt to income ratio (I only provided my real tax returns to 1 agency). I gave a very rough number of what the high price could be, but did not have the selling price yet (the inspection was just 4 days ago). Another big factor is, I have a co-signer who's family could gift us up to the full amount of the asking price. I felt some responsibility to not ask for the full amount from their family, so I told all these lenders that I intend to loan some amount that works with our income. 

 

A few days ago, I get emails from Equifax. I have a monitoring service with them and I learn that there were inquiries, and my credit score dropped 13 pts. I checked my history and discovered 3 activities: Factual Data, Equifax mortgage service, and Xactus LLC. The last record on my credit history was from July 29th, 2022, and that was my new credit card. I have no debt or late payments this month or last. So naturally, I'm concluding that these loan inquiries are hitting me. I don't yet have a price for the property and therefore have not yet asked for any certain amount. And yet, my score is down (805 to 792, as seen on my JP Chase account). I'm anxious and really frustrated with this. I don't know if I should talk to any more lenders. I don't have any student loans or any other outstanding loans (all paid off in 2019) or late payments. I don't know what's going on Smiley Sad

 

I just called 1 of the 3 banks (Factual Data - Patelco) in my Equifax activity report and was reassured it was just a "soft inquiry", and that I should come to this forum to ask and try to understand. I'm planning to continue calling the other 2/3 banks, but I'm writing this now to see what people think and suggest. 


If you're getting your score from Chase, it's probably not a FICO score. Disregard.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 3 of 11
MochiGSakura
New Visitor

Re: Double digit credit score drop for talking with mortgage lenders. Help!

It's from Equifax. Not sure what EQ Vantage is.

Message 4 of 11
MochiGSakura
New Visitor

Re: Double digit credit score drop for talking with mortgage lenders. Help!

The score is from Equifax, and Chase started to reflect the changes today.

Message 5 of 11
805orbust
Valued Contributor

Re: Double digit credit score drop for talking with mortgage lenders. Help!

@MochiGSakura  don't let it spoil your weekend.  792 is just as good as 805 when it comes to approval odds and terms. Matter of fact I believe the 792 is better but that's another conversation entirely.

 

Also, make sure that whatever you're viewing is a genuine FICO score and not some other crappy/irrelevant score.



Message 6 of 11
MochiGSakura
New Visitor

Re: Double digit credit score drop for talking with mortgage lenders. Help!

Thank you for that reassurance. I'm still digesting what's going on and learned 2 of the inquiries are indeed unauthorized (one contradicted themselves and denied a hard inquiry, and the other filled out part of the application without my knowledge or authorization). Mistakes happen and so as long as the resolutions play out, I do feel better about this weekend ;p. 

Message 7 of 11
805orbust
Valued Contributor

Re: Double digit credit score drop for talking with mortgage lenders. Help!

@MochiGSakura  there you go!  



Message 8 of 11
FireMedic1
Community Leader
Mega Contributor

Re: Double digit credit score drop for talking with mortgage lenders. Help!

@MochiGSakuraPaid Scores from EQ is Vantage 3.0. You can get free EQ FICO 8 score here on MyFICO:

https://www.myfico.com/products/fico-free-plan-a 

It isnt your mortgage score. But it isnt Vantage.


Message 9 of 11
donkort
Valued Contributor

Re: Double digit credit score drop for talking with mortgage lenders. Help!

The Chase Credit Journey score is a Vantage 3--doesn't count towards mortgages.

 

Anything over 760 middle score yields the lowest interest.

 

Look at your FICO 5, 4, 2 scores.  Those count much more than any other FICO or Vantage.

 

All mortgage inquiries should count as 1 inquiry collectively for a certain period of time.  

FICO 8: EQ 810; TU 816; EX 822 as of 7/5/2022
Message 10 of 11
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