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Credit Journey/Mortgage App Help...

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Established Member

Credit Journey/Mortgage App Help...

I have been able to pay things down and have my only collection removed (thank you Cavalry).  My new 3B report drops 9/10/19.  All three reports should have my FICO8 somewhere around 700 and my mortgage scores some where between 620-680...if not higher.  My only debt at this point is a closed account that i owe $5500/7500 ( i am paying it off next week when my current house sells in divorce) on, and a financed car.  I have freed up almost 14K worth of credit between Four accounts.  Not to mention this PayPal nonsense that is about to drop.

 

I will have somewhere between 5-8K for a down payment if needed.

 

I am concerned about mortgage apps.  I am going to apply for a VA loan or something similar via NFCU.  However, would it be wise to also apply for a loan with Veterans United or Rocket Mortgage or both?

 

If i apply for one or all three or more, will a mortgage app be treated like a car app, and given a grace period in which all three credit agencies know that I am applying and not ding my credit a bunch.

 

Any advice welcome.

 

Thanks, Matt

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Community Leader
Super Contributor

Re: Credit Journey/Mortgage App Help...

Your credit will be dinged; however, on manual review from mortgage companies, they will see that you were mortgage shopping (and will bunch these together if done in a 14-day period). Also, you don't have to apply to more than 1 mortgage company. If it were me, I would just talk to them first to find out rates and fees for the type of mortgage I was interested in. Then, if it sounds promising, I would apply. 

 

I did a lot of research prior to applying for a mortgage and selected NFCU because they offered what I was looking for in a mortgage--$0 downpayment and no PMI. So I only applied to one bank.


DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macy's $20K || NFCU CLOC $15K || CitiCostco $12.7K || NFCU Platinum $12.5K || Apple Card $6.5K ||
Message 2 of 4
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Established Contributor

Re: Credit Journey/Mortgage App Help...

Hello my fellow Veteran,

I suggest that you check out your FICO 2 mortgage scores as most lenders will use this model instead of 8. It will be lower so be careful before applying these lenders as they have stricter credit and scores requirements. I get at least a half dozens calls a week from borrowers who had their credit pulled only to find out their scores were too low for these lenders. On a side note, many of us lenders  allow credit scores down to 550 on both FHA and VA loans, which require a manual underwrite which these lenders will most likely not be able to do. Like the other member stated,  I would do your shopping over the phone, knowing what your scores are.

 

Best wishes to you

 

Mortgage Banker - Since 1988 offering FHA, VA, USDA, Conventional, Jumbo, Portfolio and NonQM Loan Products. Licensed in AL, AR, AZ, CA, FL, GA, IL, IA, IN, LA, MI, MO, NC, NE, NV, OH, OK, OR, SC, TN, TX, VA and WI.
Message 3 of 4
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Member

Re: Credit Journey/Mortgage App Help...

I recommend getting multiple loan estimates (not work sheets).  Most lenders off matching.

 

I was able to lock in a refi @ 3.375 with $50k cash out on 9/4.  I had 8 Lone Estimates.  My Credit union, along with the 2 other best lenders, provided rate, lender credit and closing costs matching.  I pitted the 2 against each other, then took the best LE to Canvas Credit Union here in Denver.

 

$250K loan amount, including $50k cash out, against a home value of $400k - LTV 62.5%

30 Yr Fixed Conventional

3.375 - no origination with $934 Lender Credit

$875 (Appraisal, credit report, fllod cert, tax service and income verification)

$995 Title services (I shopped these, down from $2600, $2300 and $1250)

 

So bottom line - $1027 Closing Costs or ~0.4% of loan value. I did not include taxes, prepaids and escrows for obvious reasons.

 

Last minute, I shopped the final LE, just to be told by multiple lenders, "lock that in and take it to the bank!"  and  "Hell of a deal!"  Boom!

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