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Mortgage Lending Question and Positive News

Chestnut1
Regular Contributor

Mortgage Lending Question and Positive News

Morning folks, Sweet November.

 

I want to Start this thread with some positive news. My Scores increased a +5 across all 3Bs since i last posted. which was about 17 days ago. May be because the minute DISCO started reporting, my UTL went down from 14% to <3%

I'm super stoked to see the line going up and NEVER EVER would bring it down.

 

Now my Question is about Mortgage Lending. I have these wild thoughts running through my head about buying a house (Maybe next year End).

Based on the details below, Where do you think i stand TODAY and what rates (approx) could i expect or will i be even approved of Mortgage ?

 

Fico 8 11/7/19 EX: 676 TU: 673 EQ: 676

Fico 5,4,2 Mortgage lending scores EX: 652 TU: 666 EQ: 658 ( median Score 658 )

Total Salary per annum : $145K

Total Savings in the bank: $45K

Total Debt : $9200 (Includes an Excellent 3 yr Payment history Auto Loan. Currently Open till 2022 )

Credit Card Usage : <3% UTL (Total CL $15000)

 

Baddies

  1. Auto loan : Last updated : Apr -18, Payment Status : Charge-off, Worst Deliq : 90 days past due, Balance : $3,587 , 30 Days Late: Jul-15
    60 Days Late: Aug-15, 90 Days Late: Sep-15
  2. BoFA CC $8500 Limit. Payment Status : Pays account as agreed (PIF in fact) . Status : CLOSED. 30 Days Late:  Dec-14, 60 Days Late: Oct-14, 90 Days late : Aug-2014
  3. BoFa CC $300 Limit : Payment Status : Charge-off. 90days Late: Jun-2013. Last activity Feb-2106

FYI, Working on Baddies and Digging the grave for Predatory Cards. 

 

Final Question : Is it a Myth or real that Credit Scores plummet when Mortage Lenders start running your report during the Buying Process ?

I want to know this since i want to have a safety blanket of scores just in case the drop happens.

 

 

 

11/10/18 EX: 540 TU: 525 EQ: 535
10/20/19 EX: 671 TU: 665 EQ: 671
11/07/19 EX: 676 TU: 673 EQ: 676
12/31/19 EX: 669 TU: 679 EQ: 673
01/06/20 EX: 670 TU: 682 EQ: 682
Paid Charge off to $0 in Dec 2019, reported Jan 2020
01/15/20 EX: 666 TU: 655 EQ: 660
02/07/20 EX: 676 TU: 668 EQ: 668
05/08/20 EX: 685 TU: 685 EQ: 682
05/18/20 EX: 690 TU: 685 EQ: 682
03/16/21 EX: 702 TU: 697 EQ: 700
04/20/21 EX: 705 TU: 700 EQ: 702
04/19/22 EX: 716 TU: 705 EQ: 716




Mortgage Middle Score 682 (Old)
Mortgage Middle Score 706 (New)
Message 1 of 5
4 REPLIES 4
hpotterfan77
Regular Contributor

Re: Mortgage Lending Question and Positive News

Mortgage underwriter here.  To address your questions, firstly, your score is sufficient to obtain certain types of conventional and government mortgages.  The debt we use is what you are monthly, NOT your total debt.  Typically, your debt to income ratio should be under 43% for optimal approval.  With that said, I couldn't begin to tell you what rate to expect because they constantly fluctuate however, IF you get all the baddies paid off, which most programs would require anyway, you're rate would be any normal conventional rate at the time.  Hope this helps.

Starting Scores (9/19): EQ - 474/TU - 528/EX - 502
Current Scores (03/22): EQ - 617- TU - 644/EX - 650
Comenity M/C - $5260.00, BJs Perks MC - $1800.00, Credit One - $1200.00, Credit One - $800.00, NFCU -$6300.00, Care Credit - $4000.00, William Sonoma - $3500.00, Overstock - $3300.00, Lands End - $1000.00, Pottery Barn - $2000.00>
Message 2 of 5
Chestnut1
Regular Contributor

Re: Mortgage Lending Question and Positive News

Thanks for the detail here. Coming to Baddies, I'm really stuck on them and bit scared to touch them thinking it might plummet my score if i Pay them off. They would still be on there with recent update which i think might hurt my score. 

So you say, its tough to get Mortgage approved/qualified with those Baddies ?, considering they are old and i see that their impact on the credit score is Wearing off on the report ?

11/10/18 EX: 540 TU: 525 EQ: 535
10/20/19 EX: 671 TU: 665 EQ: 671
11/07/19 EX: 676 TU: 673 EQ: 676
12/31/19 EX: 669 TU: 679 EQ: 673
01/06/20 EX: 670 TU: 682 EQ: 682
Paid Charge off to $0 in Dec 2019, reported Jan 2020
01/15/20 EX: 666 TU: 655 EQ: 660
02/07/20 EX: 676 TU: 668 EQ: 668
05/08/20 EX: 685 TU: 685 EQ: 682
05/18/20 EX: 690 TU: 685 EQ: 682
03/16/21 EX: 702 TU: 697 EQ: 700
04/20/21 EX: 705 TU: 700 EQ: 702
04/19/22 EX: 716 TU: 705 EQ: 716




Mortgage Middle Score 682 (Old)
Mortgage Middle Score 706 (New)
Message 3 of 5
hpotterfan77
Regular Contributor

Re: Mortgage Lending Question and Positive News

It doesn't matter how old they are.  If they are on your credit report and over $250.00, you will be required to pay them in most cases so you might as well take care of them now.

Starting Scores (9/19): EQ - 474/TU - 528/EX - 502
Current Scores (03/22): EQ - 617- TU - 644/EX - 650
Comenity M/C - $5260.00, BJs Perks MC - $1800.00, Credit One - $1200.00, Credit One - $800.00, NFCU -$6300.00, Care Credit - $4000.00, William Sonoma - $3500.00, Overstock - $3300.00, Lands End - $1000.00, Pottery Barn - $2000.00>
Message 4 of 5
gdale6
Moderator

Re: Mortgage Lending Question and Positive News


@Chestnut1 wrote:

 

Final Question : Is it a Myth or real that Credit Scores plummet when Mortage Lenders start running your report during the Buying Process ?

I want to know this since i want to have a safety blanket of scores just in case the drop happens.

 


An inquiry or multis will drop your score but with auto and mortgage loan pulls if they are coded correctly all of them count as one inquiry if done within a 2 week period of the first inquiry hitting your CR.

Message 5 of 5
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