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Middle score tanking while in underwriting

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kendreia
Established Member

Middle score tanking while in underwriting

Please help!  I am currently in underwriting and a small collection just tanked my middle score.  I was at a 641 and now I am a 627 (this is a mortgage score) MY LO said he would not repull my score, but I am afraid that he just doesn't realize that Fannie will?  Or someone in underwriting will?  I emailed him and I am waiting to hear back.  I should get a small jump when my lower credit card balance reports in July- but GAH!  Anyone close without a second pull on a conventional loan?

Message 1 of 11
10 REPLIES 10
kendreia
Established Member

Re: Middle score tanking while in underwriting

Should I attempt to contact the collection agency, pay it and see if they will immediately remove it?  GAH!

Message 2 of 11
joshall
Contributor

Re: Middle score tanking while in underwriting

Most LO said that there wont be any re-pull.  However, I am very certain they the Underwriter will repull just days before closing.

 

So, pay it off before it is too late.

 

 

Message 3 of 11
kendreia
Established Member

Re: Middle score tanking while in underwriting

I am going to verify with the LO that I should contact them and pay it off.  Do you think I can get them to remove it immediately or will it showing paid raise my score?  Their inquiry (the mortgage lenders) alone dropped me 10 points on one of my scores. I knew it was going too smoothly.  Our offer was accepted and inspection is tomorrow.  Appraisal is ordered.  So scared.  I hope he emails me back soon.

Message 4 of 11
kendreia
Established Member

Re: Middle score tanking while in underwriting

LO says they will use the scores they have presently.  He also advised not to pay the collection at this time.  $65.00!  I would have paid that 10 times to avoid this.

Message 5 of 11
joshall
Contributor

Re: Middle score tanking while in underwriting

I am happy for you - problem solved!

 

But I am surprised that he asked you to not pay it off.  That is a bit strange.

 

Maybe other board members can also provide some comments.

Message 6 of 11
Anonymous
Not applicable

Re: Middle score tanking while in underwriting

Call the collection agency see if they will delete if you pay. If it's already on your report, that is not going to hurt any. Paying it off should help too.. but if your LO says not to pay, then I would only pay if the collection agency will delete.
Message 7 of 11
frugalQ
Valued Contributor

Re: Middle score tanking while in underwriting

Although the lenders will pull your credit report at the end of the mortgage process, it is usually NOT for score purposes...as long as your qualifying scores are still within the lenders acceptable timeframe.  they check again to look for new credit and things of that nature.  Now, when they pull the report again, the underwriter may come back and give you additional conditions around the new collection (i.e., LOE or a requirement to pay it off), but they are usually not looking at the scores again.

 

I agree with your LO and another poster, try to get a PFD if you have the funds to do so....if you they will not delete it, do not pay it unless the underwriter instructs you to do so.

 

It's a very good thing that you are being open and honest with your LO....trust his guidance as he knows the UW much better than we do here.  Smiley Very Happy

 

Good Luck!!!

AmEx Green NPSL | Amex BCP 16K | Citi Simplicity 10k | Discover IT 9K | Chase Slate 7.5K | Amex Hilton HHonors Surpass 7K | Capital One QuickSilver 6K | Home Depot 5k | Chase Freedom 4.5K | LOC 2.5K
Message 8 of 11
kendreia
Established Member

Re: Middle score tanking while in underwriting

Thanks so much, everybody!  Frugal- that is what he said- they will not pull new credit scores but will look for changes like new credit.  My husband is with the inspector right now!  Can't wait until we know the outcome of that, have the appraisal done and I hear back from UW with their conditions.  This is sooo scary. I made the leap before I wanted to because I saw this house on the market.  So far everything fell into place so well.  I sold my home which wasn't even on the market, got my pre-approval and had an accepted offer on this house in 3 days.  Then- unexpected money in the form of a bonus and from my husband's Grandmother's estate showed up.  I was feeling great until I saw that score start tanking. I can't wait for the clear to close. I have not even been sleeping!   Beer and wine!  Thank goodness for beer and wine!

Message 9 of 11
frugalQ
Valued Contributor

Re: Middle score tanking while in underwriting

looks like everything is falling into place for you.

 

I know the stress you are feeling....it will be over soon.  yes, beer and wine was prevelent in our house during the mortgage process.  beer for the hubby and wine for me!!

 

congratulations!!!

AmEx Green NPSL | Amex BCP 16K | Citi Simplicity 10k | Discover IT 9K | Chase Slate 7.5K | Amex Hilton HHonors Surpass 7K | Capital One QuickSilver 6K | Home Depot 5k | Chase Freedom 4.5K | LOC 2.5K
Message 10 of 11
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