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How much do I need to have saved up for closing costs for a NFCU Mortgage?

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Established Member

Re: How much do I need to have saved up for closing costs for a NFCU Mortgage?

Ok... great idea... I'll definitely have to do research on who doesn't do a hard pull.... I'm in kind of nervous to ask for an increase.
Message 11 of 22
Frequent Contributor

Re: How much do I need to have saved up for closing costs for a NFCU Mortgage?

I'd still recommend paying down your balances a bit before you ask for increases. Otherwise, you're likely to get either denied or small ones.

 

Step 1 should be to pay all cards to below 68.9% of their credit limit

Step 2 - pay all cards to below 48.9%
Step 3 - pay all cards to below 28.9% 

Step 4 - pay all cards to below 8.9%

Step 5 - pay all cards to zero except one (AZEO) 

 

That said, if you don't have any negatives on your report (charge-offs, collections or late payments) I think you stand a pretty good chance of being above 760 after Step 3. That would get you the best rates and take some pressure of paying the remaining balances immediately. Of course, with the APR you are paying, it is still wises to pay them off asap


Message 12 of 22
Established Member

Re: How much do I need to have saved up for closing costs for a NFCU Mortgage?

Yes...I agree...I rather pay them down...so I will not be requesting any credit increases. I started rebuilding my credit two years ago... the negative things that were on there a few years ago fell off a cpl years ago...so no collections, late payments etc is on my credit report.
Message 13 of 22
Community Leader
Super Contributor

Re: How much do I need to have saved up for closing costs for a NFCU Mortgage?


@Caardvark wrote:

A house is typically the biggest expense one will have in their entire life. And, even small movements in interest become expensive over the course of a 30 year term. Therefore, in my opinion, you should absolutely, positively with NO EXCEPTIONS, pay down your cards before trying to get a mortgage. 

 

Below is a quick table on your current balances and utilization. Your scores are getting crushed by some of those balances. There are scoring penalties when aither aggregate or individual card utilization surpass 28.9%. And these penalties increase when you surpass 48.9%, 68.9% and 88.9%. (Anything over 88.9% is considered Maxed and gets an even bigger penalty).

 

Ideally you want your aggregate utilization to be below 8.9% and no individual card above 28.9%. If you truly do not have any late payments, charge-offs,. or collections, I can easily see your score well above 760 if you do, which will get you the best rates. 

 

AccountBalanceLimitUtil
Lowes$0.00$1,000.000.0%
CreditOne$0.00$1,000.000.0%
CreditOne$175.00$1,150.0015.2%
Capital One$479.00$1,500.0031.9%
Target$1,483.00$2,000.0074.2%
Kohls$2,533.00$3,000.0084.4%
BoA$2,200.00$2,300.0095.7%
Chase$4,590.00$7,000.0065.6%
Fingerhut$1,887.00$3,900.0048.4%
 $13,347.00$22,850.0058.4%

Ahh @Caardvark. Kudos to you for breaking it down in an easy to understand and readable format for OP. 

REVISED GOAL: Garden ‘til Dec 2020 — 0 inquiries

Previous Goal: Garden til APR 2020 (extended) and
800 Club (accomplished)


DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799
DEC 2017: EX 775, TU 778, EQ 769

|| NFCU CashRewards $30K || AmX Cash Magnet $30K || Discover IT $22.2K || Macy's $20K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 14 of 22
Community Leader
Super Contributor

Re: How much do I need to have saved up for closing costs for a NFCU Mortgage?


@Caardvark wrote:

But Wait There's More!!!

 

  1. Mortgage scores are particularly sensitive to # of accounts with balances. So, keep this in mind. Also, search these forums and read up on AZEO 
  2. Another way to get your utilization down is to request credit limit increases. Search the forums to see what credit card lenders you have that do not HP for a CLI. You definitely do not want an HP but should be actively seeking any and all SP credity limit increases you can

OP, in reference to #1 above, since CreditOne and Cap1 are only $175 & $479, I suggest paying those off first. 

REVISED GOAL: Garden ‘til Dec 2020 — 0 inquiries

Previous Goal: Garden til APR 2020 (extended) and
800 Club (accomplished)


DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799
DEC 2017: EX 775, TU 778, EQ 769

|| NFCU CashRewards $30K || AmX Cash Magnet $30K || Discover IT $22.2K || Macy's $20K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 15 of 22
Established Member

Re: How much do I need to have saved up for closing costs for a NFCU Mortgage?

That's exactly what I plan on doing... I'll post an update once it's reported and scores are updated
Message 16 of 22
Established Member

Re: How much do I need to have saved up for closing costs for a NFCU Mortgage?

Updated mortgage scores as of 4/20/19:

EQ - 650
TU - 679
EX - 681

So I've bit the utilization bug and I like it! We're currently in the process of paying down more CC balances, but I'm very excited with the results so far. I know that we won't have all cards with the exception of one with zero balances by the time we apply. But getting these high utilizations down significantly is definitely working in our favor. We hope to go for our approval at the end of July. I'll post the updated mortgage scores again on May 20th when myfico generates a new report. Our goal is 720... let's see if we can do it.
Message 17 of 22
Regular Contributor

Re: How much do I need to have saved up for closing costs for a NFCU Mortgage?

Don't even think about mortgage until those are paid down, will pay off in the short term, will pay off tremendously in the long term.

Discover IT $9,500 - Sept 2016
Amex BCE $31,500 - July 2017
Paypal 2% CB $10,000 - May 2019

Message 18 of 22
Established Member

Re: How much do I need to have saved up for closing costs for a NFCU Mortgage?

Thank you for the reminder...I definitely won't even think about it.
Message 19 of 22
Regular Contributor

Re: How much do I need to have saved up for closing costs for a NFCU Mortgage?

sarcasm? Smiley Surprised

Discover IT $9,500 - Sept 2016
Amex BCE $31,500 - July 2017
Paypal 2% CB $10,000 - May 2019

Message 20 of 22
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