So I was calling around, asking different mortgage companies about where I stand and trying to find the most knowledgable person I could find. I came across a small mortgage company near my house, so I decided to talk to them. I told him my FICO scores, and that I want to apply by April/May of this year. Here is what the guys advice was to me:
1. I have 9 student loans all in deferment, and 2 active credit cards. He said that I should get 2 more cards, build up a history with them over the next two months...???...
**This would lower my score, add two more inquires, and 2 months likely wouldn't be enough time to gain any type of history. I would be lucky if they were reporting by then. Not to mention I would then have 5 inquires on my credit withing the 1 year period before apping for the mortgage.
2. He gave us the same information for my girlfriend. Also said it would be best if she could open a good standing loan and give it the 2 months to age.(he was talking about a car loan). We do not make to much money together (about 40k annually together). This would tank our DTI.
3. He then said, if he pulled my credit, the hit wouldn't do anything to my score, because it is justa hard pull and there are different types of pulls. Thanks to myFico I know everything he is saying is wrong. I told him I had a truck loan that might com back to bite me in the butt when we apply. He suggested Lexington Law to get it removed. I have heard horrible things about this company. He just happened to have their contact info and a reps name I could talk to there. I am starting to feel bad for anyone that listed to this hack of a mortgage company. Luckily they are small town company, and horrible salesman.
4. He told me with 650 midscore, we would be lucky to get a 100k loan through FHA. I have seen people with MUCH lower midscores get MUCH higher financing through FHA.
*He also said that FHA doesn't recognize Non-traditional forms of credit, although their website states they do.
Am I just not understanding this guys methods, or am I completely right that he and his company are hacks?
Starting Score: myFico Scores Equifax 544 Transunion 585
@Tischer712 wrote:So I was calling around, asking different mortgage companies about where I stand and trying to find the most knowledgable person I could find. I came across a small mortgage company near my house, so I decided to talk to them. I told him my FICO scores, and that I want to apply by April/May of this year. Here is what the guys advice was to me:
1. I have 9 student loans all in deferment, and 2 active credit cards. He said that I should get 2 more cards, build up a history with them over the next two months...???...
**This would lower my score, add two more inquires, and 2 months likely wouldn't be enough time to gain any type of history. I would be lucky if they were reporting by then. Not to mention I would then have 5 inquires on my credit withing the 1 year period before apping for the mortgage.
2. He gave us the same information for my girlfriend. Also said it would be best if she could open a good standing loan and give it the 2 months to age.(he was talking about a car loan). We do not make to much money together (about 40k annually together). This would tank our DTI.
3. He then said, if he pulled my credit, the hit wouldn't do anything to my score, because it is justa hard pull and there are different types of pulls. Thanks to myFico I know everything he is saying is wrong. I told him I had a truck loan that might com back to bite me in the butt when we apply. He suggested Lexington Law to get it removed. I have heard horrible things about this company. He just happened to have their contact info and a reps name I could talk to there. I am starting to feel bad for anyone that listed to this hack of a mortgage company. Luckily they are small town company, and horrible salesman.
4. He told me with 650 midscore, we would be lucky to get a 100k loan through FHA. I have seen people with MUCH lower midscores get MUCH higher financing through FHA.
*He also said that FHA doesn't recognize Non-traditional forms of credit, although their website states they do.
Am I just not understanding this guys methods, or am I completely right that he and his company are hacks?
Yep, he was an idiot and is destroying people chances for loans. Your spot on with your assessment. And with FHA the approval amount has nothing to do with your score, if you qualify for the loan the amount you qualify for is based on your finances and not your score. You score just gets in you in the program.
Thanks guys, that is what I thought, but he was telling me it is more about what our scores are that gets us financed. Once again, I think he maybe gets percentages on how many credit apps he helps get for the company, and maybe even some compensation from Lexington Law. I think with 42k (soon to be 47k) combinbed annual income, we will be able to get financed for a 100k home no issues, especially with each of us having 8% utilixation, it all comes down the scores now.
Actually for a mortgage the DTI is the most important! Yes, the score is important, but you can usually overcome small scoring issues with extra $$ down.
He does sound like he has worked out some sort of deal with Lexington Law. 
If I were you, I would find someone else. The difference between a smooth purchase and a nightmare is the quality and experience of your loan officer.
