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Taking the Mortgage plunge...my scenario any thoughts?

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atl_blh
Established Member

Taking the Mortgage plunge...my scenario any thoughts?

My wife and I are wanting to start the mortgage process by getting pre-approval, but I am trying to get my scores up since mine are the ones they will use cause hers are much higher.  Below is my scenario, we meet income, job length, low monthly debt.  We don't have a 20% down payment, but could do 5%(i have heard there are conventional loans at 5% down).  What are our chances or pre-approval with my midscore of 655 from Experian.  Do lenders pull the same number or different?

 

My scores EQ 686, TU 684, EX 655.  Wife 750+ on all and great credit history

 

I am trying to figure out how to get that Experian score up to the others, any thoughts on the difference? 

 

Only things negative on my report are:

-Charge off for $481 from First National Credit Card/Legacy Visa

-Collection from Midland Credit Management for $927 (Tribute MasterCard) - Sent certified letter with FTC ruling for deletion, waiting to see

-Several 30 and 60 day late payments on a car loan from 2007 that was paid in full in 2008 and closed - Have tried GW to delete late payments, but no luck

 

Any thoughts on my scenario are appreciated.

Message 1 of 16
15 REPLIES 15
StartingOver10
Moderator Emerita

Re: Taking the Mortgage plunge...my scenario any thoughts?

Sounds like you didn't pull your FICO scores because you mentioned Experian. Those scores are FAKO's and have no relationship to FICO scores.

 

Pull your scores from here at the myFICO site to give us an idea of where you are score wise. 

 

On the charge off from First National Credit and the collection from Midland, when did those occur?

Message 2 of 16
tooleman694
Valued Contributor

Re: Taking the Mortgage plunge...my scenario any thoughts?

Typically you need about a 680 to go conventional with 5 percent down. You are close.

Message 3 of 16
atl_blh
Established Member

Re: Taking the Mortgage plunge...my scenario any thoughts?

The FNCC and Midland were both from 2006.

 

The scores for Experian and Transunion came from their sites, are you saying if I pulled those scores here on myFICO they may be different?  Equifax score was pulled here on myFICO.

Message 4 of 16
StartingOver10
Moderator Emerita

Re: Taking the Mortgage plunge...my scenario any thoughts?

Yes, those scores Experian and Transunion are a different algorium.

 

The Equifax score here is what is used. We don't have access to Experian FICO at the moment (unless you actually apply for a mortgage, your lender will have it).

 

Leave the FNCC and Midland collection alone, they are old now.

 

What is your DTI? Have you calculated it yet?

Message 5 of 16
atl_blh
Established Member

Re: Taking the Mortgage plunge...my scenario any thoughts?

It is low, only reoccuring monthly debts I have are student loan payment of $175/mo, and an AMEX that I pay in full each month, but would be a payment of say $120/mo if averaged out.  Not sure how they calculate balance paid in full each month.into DTI.

 

Wife only has car lease payment of $500/mo and AMEX paid in full each month and Macy's card that rarely has a balance until Christmas.

 

Our combined monthly income is $10,460.

Message 6 of 16
atl_blh
Established Member

Re: Taking the Mortgage plunge...my scenario any thoughts?

I just pulled my TU here on myFICO can came back with a score of 674.  So via myFICO my TU score is 674 and EQ is 686.  Experian I guess is just a guess since the 655 you said is a bogus number.

 

It is funny that TU is reporting my Midland accountant as a collection and Equifax is not reporting as a collection.  Guess I am still on the fence to qualify for the mortgage pre-approval.

 

Just my own rant here, but if two people are assuming the liability on a home purchase, why do they just ignore the other persons credit score in the approval process.  I hate that it is a money grab so they can chagre a little higher interest rate.

Message 7 of 16
tooleman694
Valued Contributor

Re: Taking the Mortgage plunge...my scenario any thoughts?

My TU Fico is about 20 points lower here then the real one. I pulled it here the same time I had a mortgage pull, I got a 670ish here and the real was 690ish.

Message 8 of 16
atl_blh
Established Member

Re: Taking the Mortgage plunge...my scenario any thoughts?

So really it is a crap shoot if you are hovering in the 680 range and need a mid score of 680.  So I go for pre-approval and see what happens, which is not what I wanted to do.  On the other hand the lender could pull and it could show higher.  So at this point I am back on the ledge.

Message 9 of 16
StartingOver10
Moderator Emerita

Re: Taking the Mortgage plunge...my scenario any thoughts?

If you get rid of the collections then your score should really increase.

 

Have you looked into a pfd at all? Check the rebuilding section of the forum. Is there anything else on your report that would keep the scores so low?

 

Also, if you are waiting until your statement hits to pay off your credit cards, you might consider paying them prior to the statement date. That way you can maximize your utility to less than 9% of the credit line at the time the statement cuts. If you have more than one card, make sure all report zero except for one that reports less than a 9% balance.

Message 10 of 16
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