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Need help increasing mortgage scores

betty2327
New Member

Need help increasing mortgage scores

Hi everyone!
I’m hoping someone might be able to give me some insight on increasing my mortgage scores 5 points quickly??? Yes you read that right 😂, I’m only 5 points away from getting approved for our construction loan. I’ve been rebuilding my credit since October and right now my mortgage scores are 645,647,624.

I recently got a secured cc and am waiting for the first months statement to come. I also have a kohl’s charge that I recently used a little of. My husband has a capital one that he added me to and that has helped as well as being added to my father in laws credit card.

What affects the mortgage scores and quickly? Will it be enough to just pay the first months statement in full and on time? Should I pay off my last remaining student loan? Help please!
Message 1 of 5
4 REPLIES 4
betty2327
New Member

Re: Need help increasing mortgage scores

Oh and I forgot to ask: do the mortgage scores update continually throughout the month like the fico 8 scores? Or is it just once a month? Thanks!!!
Message 2 of 5
DollyLama
Established Contributor

Re: Need help increasing mortgage scores


@betty2327 wrote:
Hi everyone!
I’m hoping someone might be able to give me some insight on increasing my mortgage scores 5 points quickly??? Yes you read that right 😂, I’m only 5 points away from getting approved for our construction loan. I’ve been rebuilding my credit since October and right now my mortgage scores are 645,647,624.

I recently got a secured cc and am waiting for the first months statement to come. I also have a kohl’s charge that I recently used a little of. My husband has a capital one that he added me to and that has helped as well as being added to my father in laws credit card.

What affects the mortgage scores and quickly? Will it be enough to just pay the first months statement in full and on time? Should I pay off my last remaining student loan? Help please!

First to answer your second post, it only updates monthly on Mortgage Scores. 

 

Now, many factors affect mortgage scores, how many accounts are reporting a balance (when going for a mortgage, the best is only 1 revolving account, preferably a bankcard, not retail, in your name). 

With the 1 bankcard, only let a balance of less than 8.9% of it's credit line report (include interest) so no more than 8.90/100 dollars of credit line. 

Are the AU accounts reporting balances? Do they have any derogs, lates? 

Do not apply for any new credit

 

We can lead you better if you can elaborate more on your file. 

How many installment loans, list current balance, and opening balance

Kohls list balance and credit limit, date opened

Secured CC, list balance and credit limit, date opened

Same for all the accounts you are AU on and date opened

If any lates, how many 30, 60, 90 etc. and how long ago was the most recent?

Any collections- List amount owed, date of first deliquency 

How many inquiries on each bureau, and the oldest and youngest dates.

 

We need overall utilization and individual on revolving cards. 

Message 3 of 5
betty2327
New Member

Re: Need help increasing mortgage scores

@DollyLama thanks for the reply! I hope this info is helpful:

1. Opensky secured cc, opened 4/2019, $200 limit, $35 balance, 18% utilization
2. Kohl’s, opened 7/2016, $900 limit, zero balance
3. Navient student loan: opened 3/2007, $13,454 balance, paid up to date but had previous lates from 8/2017 through 9/2018
4. AU on capitol one card opened 1/2019, 2000 limit, $572 balance, utilizing 29%
5 AU on Bank of America, opened 11/1992, $17400 limit, $131 balance, 1% utilization

There are a total of 26 inquiries from mortgage places from 9/18,11/18,1/19 and 5/19

My fico 8 scores are: 688/648/675

On my most recent report it says my revolving utilization is 3%

I also have quite a few chargeoffs and 90d lates from 2017 and early 2018 but I have since paid everything so it is just a waiting game for those to drop off.

Should I be doing anything different to bring up my mortgage scores 5 points by the next time they update????
Message 4 of 5
DollyLama
Established Contributor

Re: Need help increasing mortgage scores


@betty2327 wrote:
@DollyLama thanks for the reply! I hope this info is helpful:

1. Opensky secured cc, opened 4/2019, $200 limit, $35 balance, 18% utilization
2. Kohl’s, opened 7/2016, $900 limit, zero balance
3. Navient student loan: opened 3/2007, $13,454 balance, paid up to date but had previous lates from 8/2017 through 9/2018
4. AU on capitol one card opened 1/2019, 2000 limit, $572 balance, utilizing 29%
5 AU on Bank of America, opened 11/1992, $17400 limit, $131 balance, 1% utilization

There are a total of 26 inquiries from mortgage places from 9/18,11/18,1/19 and 5/19

My fico 8 scores are: 688/648/675

On my most recent report it says my revolving utilization is 3%

I also have quite a few chargeoffs and 90d lates from 2017 and early 2018 but I have since paid everything so it is just a waiting game for those to drop off.

Should I be doing anything different to bring up my mortgage scores 5 points by the next time they update????

On your OpenSky, let no more than $10 report a balance at statement cut, not due date. But do not let it report zero.

Don't use the Kohl's for now. 

Remove yourself from AU on Capital One, the utilization is higher, and it is not helping age, since you are AU on a almost 30 year old card. 

 

You spoke of paying off student loan? If you are not in dire need,  and it does not affect emergency funds, down payments, closing costs, etc., then paying your student loan down to under 8% of it's original amount will help considerably. You want the installment loan in mix, so don't pay it in full as yet. Only if it affects your DTI on mortgage loan. Otherwise paying it in full now, will decrease your FICO 8 scores the most, and a tad on mortgage scores- something that you are wanting to squeeze the extra 5pts for approval.

 

Side note: If applying jointly with husband, he keeping his cards under 8.9% utilization will help his scores. It all comes down to who has the lowest "middle" score. 

 

Otherwise, It will really is going to take time and patience till the paid collections ages and falls off your report, the lates which are less than a year old on student loans, so they too are supressing your score. 

Message 5 of 5
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