My score went up and closing in under 2 weeks

[Julep80]

Hi all,

I’ve worked hard paying all my debts off and getting PFD etc. The last baddies were taking forever to fall off my credit report and I found a home I was in love with so just said “ok” to locking in interest with the 600 score I had. My rate for this loan is 5.8%.

Well my score jumped 30 points three days ago. Is 630 instead of 600 going to make a difference? I’m afraid to ask if I can get a better rate - is it too late now? My loan officer just told me a long time ago we can do a refinance in 6 months that they couldn’t wait for my score to get higher to get approved for this home. I’m putting 40k down on an FHA loan.

Thoughts?

TIA

[Mortgage-Specialist]

630 definitely makes a difference. I cant believe that 5.8% is your offered rate. Please do yourself a favor and get another quote. Your rate should definitely be in the 4's

[Julep80]

But if I ask for a different rate will it mess up house purchase?

[Mortgage-Specialist]

When you find a lender who would give you a much better offer, if you agreed to it you can forward them all of your income docs and they can use the same appraisal that was already done. Your loan can close in 2 weeks even changing lenders right now. You dont want to over pay a hundred dollars or more per month and/or refinance in 6 months and incur more costs. Adding a few days to closing isnt worth losing thousands of dollars

[zerofire]

600 was sadly the border between garbage and low. By going up 30 points to 630 you passed the stable low number of 620. Basically while we all understand that you had problems in the past your score became solid enough to not be garbage. In short you definitely have moved out of the subprime market to a more preprime area which while not great will move your percent by a reasonable amount that results in thousands difference. I would encourage you to go shopping but if all else fails you know you have one company willing to loan to you on less than ideal terms.

[CreditInspired]

Do you have a real estate agent? If yes,
please discuss your concerns with him/her.

Do you know if you have a floating lock?

Before you jump ship for a new lender,
please read your sales contract. What is the closing date? Is the seller agreeable to extending the closing date if you go to a different lender and they need more than 2 weeks to close. These are questions you must have answers to. You already have a financing commitment and the Seller may not want to chance another lender. But if your closing is ~30 days out, it’s doable without causing you or the Seller any additional stress.

GL2U

[Revelate]

Lenders can, if they so choose, close at near light speed if everything is in order.

People can and do switch lenders for a whole bunch of reasons, and in this case a takeaway often is one of those reasons that a bank will get up off it's butt and UW quickly... like seriously it can be closed under a week certainly by some lenders including the ones I've worked at in the past.

If it were me and I had a non-trivial credit score change that made a difference on my mortgage tier, I'd absolutely be all over socializing it with the current and new lenders if my current wouldn't play ball.

[Julep80]

My lender kept saying he couldn’t pull my credit again for a better rate. I finally said I’d go see if another lender would. All of a sudden I was told he could pull the credit and my score did indeed go up 35 pts on their end.

Not only did my interest rate go down to 4.6, I only have to put 20k down instead of 40k and my payment is about the same. Still in disbelief.

Thanks to all of you and this forum, I had the courage to keep pushing and threaten to change lenders.

What I don’t get is why he wouldn’t have wanted what was best for me? He kept pushing that I could refinance easily and kept saying it was not possible to adjust my percentage rate. Did he lose money by doing this for me?

I’m pinching myself because I’m 20k richer and can go shopping for items in my new home! I didn’t expect terms to change that dramatically!!!

THANK YOU!!!!

[CreditInspired]

Congrats OP. This is great news!!!!

[Revelate]

Well played sir!

Losing money by giving you a righteous deal for your current score vs your old one, maybe; however, not as much if you just walked altogether.

I really hate lenders sometimes where they attempt to shove consumers into terms that aren’t optimal for them... actually I find it offensive, I am just pleased Chase didn’t play those games with me when I went through my own mortgage rigamarole.

Anyway congratulations and big props for not only improving your score but also standing your ground during an admittedly nerve-wracking process for most consumers.