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Mortgage Score Question

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Frequent Contributor

Mortgage Score Question

My mortgage scores plummeted with the additon of an auto loan to my file.  How long, typically, is the recovery time for the scores?

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Regular Contributor

Re: Mortgage Score Question

Can you pinpoint what the reason was?

My scores dropped big but I noticed it was because my AAoA dropped below 2 years. So I can expect those points back when I get back to 2 years which will be later this year.

Most of the big drops seem to be related to age in my experiences from tracking. Not the account itself. There are some point drops when you take out a loan and are over 88.9% owed. So you’ll get points when it drops below 88.9%. Assuming you won’t still have another loan over 88.9%.
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Frequent Contributor

Re: Mortgage Score Question

Thank you for the reply. That does make sense. The new account dropped my AAOA to 1 yr 10 months.
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Community Leader
Super Contributor

Re: Mortgage Score Question


@ktm214 wrote:

My mortgage scores plummeted with the additon of an auto loan to my file.  How long, typically, is the recovery time for the scores?


I hope you weren't planning on getting a mortgage soon because getting an auto is a big no-no for lenders. It can blow your DTI if you’re at the edge of qualifying. Well really, getting any new accounts 12 months prior to mortgage application is not recommended.

 

So, if this is just your pre-planning stage, you’re ok if mortgage application date is 9/2020. 



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