cancel
Showing results for 
Search instead for 
Did you mean: 

Lender claiming rapid rescore disqualifies me for jumbo vs high-balance conventional?

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
New Member

Lender claiming rapid rescore disqualifies me for jumbo vs high-balance conventional?

Hi all, I'm getting to the final stages of closing on a somewhat quirky transaction but one still 100% on the up-and-up:

 

In the same state (CO) I'm selling the ranch I currently own to my mom and her husband, and buying their house from them. We're trading homes and getting new loans in the process of doing so. They are using a VA loan to purchase my ranch from me, and I'm looking at using either a high-balance conventional OR a jumbo to purchase their home from them.

 

As of today my 3 mortgage scores are TransUnion Fico 4: 705, Equifax Beacon 5: 703, and Experian Fico 2: 690. I have been diligently working on bringing up my scores throughout the lending process (when I started with my current lender my mid-score was 683) in order to bring my rates down. The last piece of the puzzle is that with a home purchase price of $752k currently (that's what the house appraised at w/ the current lender last month), and a loan amount of $550k, that puts me at like 26.83% equity  (and not over a 30% equity / <70% LTV position.) We had started with an $850k sales price but the appraisal came in lower than I hoped; this house has never sold since bought by my mom and dad in the 80s, and is in a pretty unique neighborhood, so we weren't sure where it would land. Anyway - 

 

As of last week Tuesday I had paid off two more CCs that would take nearly 3 weeks to update on their own to show a $0 balance, so I asked the lender for a rapid rescore on those two specific accounts to ensure they updated across all 3 bureaus. Today the lender did a hard credit pull again (without asking first, interestingly) and is claiming the best product and rate he can provide me is a high-balance conventional at 4.5% with a lender credit of $467.50.

 

What has really caught my interest is he's claiming that underwriting for jumbos versus a high-balance conventional "won't accept" any rapid rescores during the process - which smells like BS to me.

 

On my own I can see the best rates via BankRate etc. for a 700-719 score in this zip (80016) is a jumbo at 4.25% and a $907 closing costs.

 

Considering just the P+I payment for 4.25% on $550k is $2706, but at 4.5% is $2787, that's nearly $1,000 a year difference between the rates and I don't find myself particularly compelled to pay the higher rate simply for the sake of convenience.

 

Especially considering this sale doesn't fall apart if we don't close by a certain date (as it's my mom/stepdad) - I would very much appreciate this community's input on what you think I should do! Thank you!

Message 1 of 2
1 REPLY 1
Moderator

Re: Lender claiming rapid rescore disqualifies me for jumbo vs high-balance conventional?

I think I would find another lender

 

https://www.sfgate.com/realestate/article/Just-Approved-Rapid-rescoring-helps-homebuyers-6708588.php

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.