Rapid Rescores - Can it affect my already pre-approved credit?

[Quzy]

Currently working with: Pulte Mortgage
Closing Date: November 27th
Last pull from Pulte: Oct 1st
Income together with husband: 197k/yr
Scores Pulled Fico 8:
EQ: 554
EXP: 556
TU: 532

Scores Pulled Fico 5, 4 and 2:
EQ: 556
TU: 580
EXP: 593

I had my credit pulled by CredCo who works with Pulte on Oct 1st because my loan consultant with Pulte told me as soon as two of those mortgage scores hit 580 to call him to run the report for pre-approval. We did that, got our rates and now it’s just a waiting game, figured I’m home free and good to go!

There’s a huge problem. Myfico subscription was up today and I ended up deciding oh, I should get my report since I’m paying for it and see if my credit went up! Bad news. It went DOWN. Majorly! These are my current scores:

Fico 8:
EQ: 552
TU: 570
EXP: 572

Fico 5, 4 and 2:
EQ: 558
TU: 560
EXP: 526 (**bleep**!!!)

Naturally I freaked out, called my loan processor and asked if we are pulling my credit anymore. She said no, that they are only updating a LINE ITEM because there was a dispute we are no longer disputing so we signed a paper and sent it back to the loan processor. She also said we are going to do a rapid rescore..
I asked her what that was and she told me it’s NOT a hard pull but a simulation update for that line item to show what my credit would look like without the dispute. She said it may show up the new score but probably will not.

Has anyone had one of these before!? It’s not the end of the world because my husband can probably go on his own on the mortgage but I REALLY wanted to be on it! What can I do? How the HECK did my score drop 70 points just from the hard pull from
credco!?

[CramEiko]

Look at it line by line. You may be missing something else. Did something report delinquent that you are missing? Did you recently purchase something big to put one or more of your CL's over a certain UTI #?

IMHO - I would think 1 HP maybe negative 5-15 pts but not a 70 pt drop.

Curious on what you find out.

Good Luck!

[Quzy]

I found out exactly what it was.. a collection for $48 that randomly just popped up and since I’ve moved twice in the past year I didn’t receive anything in the mail.. probably got sent to one of my old addresses and it’s medical.

[Quzy]

Luckily, I was able to talk to the attorney and he confirmed he will remove the collection and sent me an email to show my mortgage processor. Thank goodness.. This is so stressful!

[homeloanexpert]

Great!

Those sneaky medical collections can rear their ugly heads at the most inappropriate times. I hope it all works out for you. BTW, all would not have been lost if your scores were less than 580. Many of us lenders that go down to 550 for FHA with 3.5% down, and down to 500 at 90% LTV.

For anyone who find themselves in the same situation.  Please read.

DISPUTES - To date, FHA, VA, or USDA do not require disputes be removed. This is a lender overlay. They can remain. If left on the report, your loan will be downgraded to a manual which is most likely the case anyways with a score  less than 600. Removing disputes (depending how old they are) can drop your scores so be careful!  So in some cases it  better they remain there when your scores are so close to the line. If a lender you are working requires removal, I always recommend revolving the disputes rather than removing them. Effectively at bureau level, it's still a dispute, but to the Underwriter, it has been resolved and no further investigation is pending. Here is a resolution. "Dispute Resolved Consumer Disagrees".

NOTE: Conventional loans do not follow suit. All disputes must be removed.

[Quzy]

Thanks for all your info! I’m hoping that removing the collections will jump my scores up, I also paid off everything so my credit is at a 10% utilization. I’m also going to see if I can get two paid baddies off my report and that should help a TON! My processor said we can do a rapid rescore once the collection company sends the email because then it will be fixed by CredCo. I think it’ll help a lot tbh. My collection is what has a dispute on it but it’s still reporting it hasn’t changed..