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Pre approved but got hit with a 46 point decrease

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Anonymous
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Pre approved but got hit with a 46 point decrease

I had an Amex start reporting after my original report was pulled for preapproval as being 59 percent utilized which dropped my FICO 08's by 45-50 points. I told my broker about it ahead of time, but she didn't seem too concerned. My original mortgage pulls show me at a 729 mid score. My broker says that they only pull my credit once and that it is good for 90 days. If I had items that appeared after the original pull (which I told my broker about ahead of time), is the underwriter going to require another pull? I need at least a 680 score. Not sure what my mortgage scores are now, but my FICO 08's show 678 - 682 now. AAAHHHHGGGG! Am I going to be okay?

Message 1 of 11
10 REPLIES 10
Anonymous
Not applicable

Re: Pre approved but got hit with a 46 point decrease

Will you be able to pay down util before next billing cycle?
Message 2 of 11
Anonymous
Not applicable

Re: Pre approved but got hit with a 46 point decrease

My cycle doesn't end before my close date Smiley Sad

Message 3 of 11
shols44
Frequent Contributor

Re: Pre approved but got hit with a 46 point decrease

Is the Amex a revolver? or charge? Have you reviewed your reports to make sure a lurker didn't come out? Most lenders will soft your report before closing to look for new debt. I think you could pay off and ask for a midcycle report just to be safe. 

 

Also review reports just to make sure nothing else caused the drop. 


Starting Score: 501
Current Score: 754 EQ,TU 745,EX 750
Goal Score: 800

Message 4 of 11
Anonymous
Not applicable

Re: Pre approved but got hit with a 46 point decrease

No, it was a revolver. They said they would do a soft pull and manually put it in. It was like 58% utilized. Will they just look at it from a DTI perspective? If thats the case then I don't care because I have a lot of room. Its my score I'm scared about. Nothing else hit but I had 2 cards that went over 30% utilization in 1 month. My overall utilization also bumped over 10%

Message 5 of 11
shols44
Frequent Contributor

Re: Pre approved but got hit with a 46 point decrease

The good news is that IME, your FICO 08 is much more sensitive than my mortgage scores. Yes a 46 point dip may cause an underwriter to take a second look, but every lender is different. Its not clear that your mortgage scores (EQ 04, EX 98, TU 04) have changed that dramatically from a 10% utilization bump if you were previously in a very comfortable zone. 

 

If you a super worried, review your actual report. Make sure nothing weird is going on. Sign up for the monitoring (3 in 1 or something) here and see your Mortgage FICOs. If they have truly taken a 46 point swing, I'd suggest a quick pay down and call in for a mid cycle update. Its always best to give the underwriter less to think about and get that clear to close ASAP and on schedule. 

 

Let us know how it goes. 


Starting Score: 501
Current Score: 754 EQ,TU 745,EX 750
Goal Score: 800

Message 6 of 11
Anonymous
Not applicable

Re: Pre approved but got hit with a 46 point decrease


@shols44 wrote:

The good news is that IME, your FICO 08 is much more sensitive than my mortgage scores. Yes a 46 point dip may cause an underwriter to take a second look, but every lender is different. Its not clear that your mortgage scores (EQ 04, EX 98, TU 04) have changed that dramatically from a 10% utilization bump if you were previously in a very comfortable zone. 

 

If you a super worried, review your actual report. Make sure nothing weird is going on. Sign up for the monitoring (3 in 1 or something) here and see your Mortgage FICOs. If they have truly taken a 46 point swing, I'd suggest a quick pay down and call in for a mid cycle update. Its always best to give the underwriter less to think about and get that clear to close ASAP and on schedule. 

 

Let us know how it goes. 


Can the credit card companies do a mid cycle update?

Message 7 of 11
shols44
Frequent Contributor

Re: Pre approved but got hit with a 46 point decrease

The only company I ever had an issue with was US Bank. Everyone else will happily do a midcycle update-once they hear the words "mortgage and loan officer asked me to call". 

 

Not their first rodeo in most cases. 


Starting Score: 501
Current Score: 754 EQ,TU 745,EX 750
Goal Score: 800

Message 8 of 11
ezdriver
Senior Contributor

Re: Pre approved but got hit with a 46 point decrease


@Anonymous wrote:

@shols44 wrote:

The good news is that IME, your FICO 08 is much more sensitive than my mortgage scores. Yes a 46 point dip may cause an underwriter to take a second look, but every lender is different. Its not clear that your mortgage scores (EQ 04, EX 98, TU 04) have changed that dramatically from a 10% utilization bump if you were previously in a very comfortable zone. 

 

If you a super worried, review your actual report. Make sure nothing weird is going on. Sign up for the monitoring (3 in 1 or something) here and see your Mortgage FICOs. If they have truly taken a 46 point swing, I'd suggest a quick pay down and call in for a mid cycle update. Its always best to give the underwriter less to think about and get that clear to close ASAP and on schedule. 

 

Let us know how it goes. 


Can the credit card companies do a mid cycle update?


It is unlikely that you will be able to get any creditor to update your payment records outside of their own reporting cycle. The way that it is normally handled is for you to provide your loan officer with receipt of payment and the lender can use their B2B access to update your file and perform a rapid rescore. It is done on a regular basis. I think that you should wait for instructions from your lender.

Message 9 of 11
shols44
Frequent Contributor

Re: Pre approved but got hit with a 46 point decrease


It is unlikely that you will be able to get any creditor to update your payment records outside of their own reporting cycle. 


This is simply not correct. What they are updating is your current balance not your payment record. As someone who did this 3 days ago with capital one, navy and amex it was rather seemless. US bank was the only company that refused. 


Starting Score: 501
Current Score: 754 EQ,TU 745,EX 750
Goal Score: 800

Message 10 of 11
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