When to polish CR for mortgage?

[Anonymous]

Hey all, I'll apologize in advance for my general ignorance of the mortgage process. I suddenly got a new job that will pay for relocation costs (including closing fees and other expenses associated with buying a home), and I'd like to take advantage, so I am now being thrust unexpectedly into the position of a first-time home buyer.

I'm familiar with the AZEO strategy of polishing my credit report in order to obtain the most favorable possible loan. My question is, when during this process should my credit report be made immaculate? I know that a borrower will generally get pre-approved at the beginning of the process, then shop for a home, make an offer, and then there's some final recalculation at closing, correct? So does it matter if I'm not AZEO during the pre-approval? Or do I need to have my report polished at the beginning and keep it perfect throughout this multi-month process for the best results?

Thanks for your help.

[DapprD]

This is a GREAT QUESTION ... i am also in a similar situation ... Would love to hear what the community suggests ... 

[kaylord84]

You need your report to be the best in the beginning (pre approval) the scores are good for 90 days but this can vary by lender. The lender will soft pull at the end but only to check to see if you open any new accounts or collections were added !

[CreditInspired]

Welcome to MyFICO

Congrats on being a first-time homebuyer and having relocation-assisted costs paid for by your employer. That’s huge!

You want your credit reports to be in the best shape possible PRIOR to having any lender pull your report. You get the best APR when your scores are 760+ (A nice clean report). Also, the PMI/MIP and home owners insurance are less when your scores are great.

So if you have high UT, work as hard as possible to get all balances to 0, except 1 and that one should only be between 1-5%, definitely less than 8.9%

Also, pull all three reports to make sure there are no inaccuracies.

I’m assuming you have no lates in the last 12 months.

And no matter what you do, don’t make any large purchases on your CCs.

GL2U

[homeloanexpert]

Congrats on your new job!

As a LO, my borrower's credit reports are good up 120 days. I run all my clients through a state of the art credit analyzing program to give specific recommendations to achieve max credit scores. If they choose to follow the report,  I will re-pull just before going into underwriting. My best recommendation is to start at least 90 days prior to wanting to make an offer. In my book, it's never too early to start the process to be out front instead of behind the 8-ball.

Best wishes to you!

[Anonymous]

Too bad your not licensed in CO. I need a good Mortgage Broker.