Trying to get a mortgage scores up

[Anonymous]

My comment here is based on a refinance with LoanDepot. It all comes down to DTI. Lenders simply want to know one thing: How will you pay them back? The answer truly lies in a low DTI ratio. So in essence, they WILL look for all areas where you have to cut back or get denied a mortgage--all other factors notwithstanding. Scores matter for rates, but getting aporoved truly comes down to that three letter acronym: DTI.

[Anonymous]

Thank you. I will trying paying down my 2 highest balances.

[Anonymous]

just go ahead and apply for a personal loan for $500 with your bank,  it does not require credit pull

[Anonymous]

just apply for a $500 personal with your bank, it doesn't require credit check.

[Anonymous]

Thank you for your response. I’m waiting on the loan officer to let me know what I can do to pull my scores up. Hopefully it isn’t much. I wasn’t trying to open new lines of credit either so I’m just in a no win situation now.

[Anonymous]

What I'm about to say here is crucial if you are looking to get a mortgage in the near future: DO NOT TAKE OUT PERSONAL LOANS. AVOID IT ALL COST. Mortgage lenders in general DO NOT LIKE TO SEE such debt since in reality that's a debt payment that could be going towards the mortgage you're trying to get. AVOID. AVOID. AVOID. Mortgage lenders are looking for clients with FOUR key factors: (a)low DTI (front and backend), (b)low revolving credit utilization, (c)At minimum 12 months on time payments on installment loans+revolving credit, (d) Employment steadiness; leaping from one job to the next will get a DENIAL! Even with stellar credit scores. In fact, having good credit scores, though important does not always guarantee approval. Lenders simply worry about one key thing: Do you have the stability or financial background to pay the mortgage note. Now, back to that personal loan. If you do have to take one out, the mortgage lender would have to payoff that debt for you to be approved. Now by paying off that personal loan, it will be absorbed into your mortgage payment. AVOID PERSONAL LOANS.
Good luck

[Anonymous]

Yeah I was not going to take the previous posters advice on taking out a loan. I already went ahead and applied for a mortgage and was pre-approved. Now to raise my scores up just a little before the contract/closing to qualify for the best interest rates.

[AZEsq]

Whew, good! Also, what you should note is that the car loan will report for a while as a positive tradeline even though it's PIF, so you don't NEED another installment loan. Take your lender's advice adn don't open more credit. Your balances are really the key to the credit score you want. Work with your lender closely so you don't overspend money that should be used for reserves/down payment and good luck!

[Anonymous]

Thank you. We have put in offer on a house and are waiting for the counter offer since they rejected it.

[jeepdad1970]

This is the first I have heard of this. How does having a "dispute" noted impact the approval process?