cancel
Showing results for 
Search instead for 
Did you mean: 

Ways to Increase my chances for AUS approval

Highlighted
New Contributor

Ways to Increase my chances for AUS approval

Hi all,
 
I'm looking to apply for a mortgage the middle of March/beginning of April and I would like to find ways to maximize my chances of AUS approval and increase my scores.  I have not pulled my mortgage scores b/c I'm still waiting on some items to update.  Below is a list of my tradelines:
 
No late payments in 20months
Victoria's Secret $0/$600 - CL was 1000 until I paid it off and for some reason they lowered my CL (awaiting CLI update on report)
NY&Co $700/$1950 payment $50.00/mo
Discover $0/$750 Awaiting new CLI update on report
Cap One Secured $5.74/$500
4 student loan accounts totaling less than $3000 payment $50.01/mo
Car Note $14500 payment $388/mo (11total late payments)
 
Collections
Ad Astra $588 (PFD pending deletion)
Receivable Performance Management $521 from old TMobile bill
Hillcrest collection $108 from 2017 electric bill forgot to pay after I moved
 
Chargeoffs
Navy Federal $191 (8/2013) (paid balance awaiting update)
Wells Fargo $238 (4/2013)
 
 
Message 1 of 7
6 REPLIES
New Contributor

Re: Ways to Increase my chances for AUS approval

Any suggestions would be greatly appreciated.
Message 2 of 7
Frequent Contributor

Re: Ways to Increase my chances for AUS approval

AUS approval is really going to depend on income source, stability of income, assets and assets for reserves along with the proposed DTI for your transaction along with the type of loan program just as much as your credit score.   

 

We'd really need to know things like income amounts and purchase price to calculate those figures, but an AUS approval with > 580 would be expected for FHA (> 620 for conventional) if there are no collections, liens or judgments in your credit and you have sufficient funds for down payment and stable income that can be verified.

 

If you realize that "predicting" the results from the Credit Reporting Bureaus algorithms is complicated since you have 8 open credit card / revolving accounts to go along with a handful of derogatories, I'll give you a couple things to consider----generally speaking you want to have lower utilization ratios reporting to the bureaus on 2-3 revolving accounts.   I don't think you are being penalized (credit score-wise) for having four accounts reporting a zero balance and four reporting reasonable balance to limit ratios.

 

You will likely have some better scoring results once you're derogatory payment histories pass the 24 month threshold however, so by all means keep paying each and every account that reports to the bureaus on time.   (See if you can get a Pay and Delete agreement on that Utility collection of $107 while you are at it)  So determining how quickly your score will rebound from late payment activity is going to be tough to predict since we don't know the date of all those lates on the auto loan.   Keep in mind that multiple lates and derogatories simply compound and "layer the risk" of approving you for a loan when the AUS systems are deployed which is another reason for anyone (including myself) to forecast your scenario.   

 

I'm also a big fan of paying off student loans with such small balances like this if possible simply because it allows you the consumer to simply focus about moving on to the next level of your life.   It's just my own theory that your credit score profile will to go to the next level once those are paid, but you are certainly making good and reasonable progress and as long as you keep up the good work managing your spending habits and payment behaviors you will be fine. 

 

 

 

 

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 3 of 7
Established Contributor

Re: Ways to Increase my chances for AUS approval


@boog13wrote:
Any suggestions would be greatly appreciated.

What type of mortgage are you shooting for, FHA, VA, Conventional?

 

The only thing I see is the Wells Fargo charge off. You don't have to pay the full amount in order to have a positive effect on your scores.

National Mortgage Banker.
VA Mortgage Expert.
Message 4 of 7
New Contributor

Re: Ways to Increase my chances for AUS approval

Thank you all for the advice. I will add my scores when the items update.

Would paying off my student loans and having the account closed hurt my score?
I'm looking for either an FHA loan or USDA loan preferably for a new construction home. I will have the 3.5 down payment.
Message 5 of 7
New Contributor

Re: Ways to Increase my chances for AUS approval

I just noticed I have the following message on my 4 student loan account:
"Dispute resolved by credit grantor"
Will these remarks need to be removed even though it says resolved?
Message 6 of 7
Established Contributor

Re: Ways to Increase my chances for AUS approval


@boog13wrote:
I just noticed I have the following message on my 4 student loan account:
"Dispute resolved by credit grantor"
Will these remarks need to be removed even though it says resolved?

Nope. That should be good enough

Mortgage Loan Officer in Greater Chicago Area plus 49 states
Message 7 of 7