need to points to get a an increase on a home loan pls help!

[Anonymous]

Need some positive feed back. I need 2 point increase on my equifax to reach 700 fico. And by doing so I also will get an increase on my mortgage amount. My credit is as follows Cap1 zero owed Orchard bank zero owed Amex zero owed Barklys amex 100 owed of 4500 cl Merrick bank zero owed Sans club zero owed Discover zero owed Hyundai lease 3100 owed of 4400 Toyota finc 11200 owed of 22500 Im suppose to payoff or pay down toyota down to nothing in order to qualify for the amount I already qualified for now also the hyundai do you think I can get those 2 point by paying any of these acounts off Also I have one old chargeoff with merrick bank which im disputing right now as we speak plse give me some good news thanks!!!

[AndySoCal]

Was the accounrt in dispute when you received your most recent scores?   What is the nature of the dispute and how long ago was the account charged off?

[Anonymous]

Yes the acct was under dispute when I received my most recent score. Also this acct is over 6 years old. I can't count on that that chargeoff falling off I have to think by paying down almost to zero both cars my score has to at the very least 2 point would you agree?

[llecs]

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@Anonymous wrote:
Yes the acct was under dispute when I received my most recent score. Also this acct is over 6 years old. I can't count on that that chargeoff falling off I have to think by paying down almost to zero both cars my score has to at the very least 2 point would you agree?

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I'd wait for the dispute to clear before applying. Paying the cars to zero could cause your FICO scores to go either way. You could try the largest balance and see how that goes. It wouldn't increase your scores likely but would improve DTI if that's an issue. Do you have any accounts hitting an anniversary?

[Anonymous]

Not sure would have to check. And about the cars I wasn't going to close the accts just get them down to nothing, I thought by getting your dti as low as possible would raise your score? And why should I wait for my dispute tofinish before applying for my loan, would it be an issue?

[AndySoCal]

Accounts in dispute are not included fully in the score. For the most part they are nuetral in the score calculation whhile in dispute. Be care ful with the old Merrick charge off account having this account brought froward in time (by the trade line re-reporting) could lower the score.

[llecs]

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@Anonymous wrote:
Not sure would have to check. And about the cars I wasn't going to close the accts just get them down to nothing, I thought by getting your dti as low as possible would raise your score? And why should I wait for my dispute tofinish before applying for my loan, would it be an issue?

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DTI is debt-to-income and isn't a part of FICO scoring (because of the income aspect). The installment balances do play a part in FICO scoring, but it is such a very, very small part. When I paid off my last loan, I went from 25% of the org. balance ($6000) to $0 in a month and one FICO (TU) decreased by 5 and the other increased by 7. I had no other installment accounts.

Some lenders will deny a loan if there are active disputes. I "think" it is a FHA guideline too if going that route. I'm closing on Monday on our first and recall signing documents declaring that I don't have any disputes reporting.

[llecs]

+1 to Andy too.

[Anonymous]

So Andy if you were in my shoes and u had to start ur loan process in about 2 months what would you do to get that score up by then, also having the same credit credentials?

[Anonymous]

Llecs yea im going fha. I will be done with my dispute before any process is started. So what your take on what to do if you be in my shoes?