Starting mortgage process after credit rebuild

[Anonymous]

I'm starting the process to obtain a mortgage.  Been renting way too long.

Long story short - my FICO scores have been in high 680's for a while (meaning FICO8).  The reason they are low is because of high utilization.  I've paid off close to 50K in credit cards and only have a few now that will have a balance.  I have a car loan and a p2p loan from lending club.  

Will have approx 100K in cash for down payment (22 %) and also have 40K in the bank for rainy day.  My mortgage FICO scores are much lower than the my FICO 8.  Is it possible that my mortgage FICO will jump since I've paid off most of my CC debt?  

DTI ratio will be 35% (including the potential mortgage payment and car loan, motorcycle loan and cc payments).

Yearly gross income is 150K

No lates, no derog - just high utilization.

Do I have a chance??

[Anonymous]

Congrats, you seem to be in a pretty good postion from what I understand.  I think that your mortgage FICOs should increase with your lower DTI though I did read on here somewhere that it's more reflective when the percentage dops below 30%.  I don't know what factors the mortgage scores, it doesn't appear obvious to me.  All I know, like you, my mortgage scores are way less than my FICO 8.  Best of luck and hopefully you'll get some good responses from other members here!

[homeloanexpert]

Wow! I wish I had more clients like you. Great job saving and good income. Although your scores are not over 700, you will have ZERO issues getting your loan approved. Piece of cake deal!

Best wishes to you!

[Anonymous]

Thanks.  I'm getting nervous because I havne't done the preapproval yet because I want all the payments to reflect on my report.  Some having a statement closing date mid month.  I want to get the preapproval soon because it's a good time to buy.  I'm guessing it makes more sense to wait until things show paid before I attempt

[Anonymous]

Also - I know my FICO 8 scores seem to improve with cc payments (especially the paid off ones) but I'm worried my FICO mortgage score wont' see the bump I'm hoping.

[JVille]

Time to buy your Actual Mortgage Scores. You can get All 3 right here on this website. Start following the scores that actually count.