Lender recommends I get my credit limit lowered

NRB525 · ‎06-06-2019

@Anonymous if you go to State Dept FCU, you can open a secured CC with as little as $250. The card has no BT fees, so you can load it up to 90%+ and see the fireworks. I opened a $500 secured in 2015 just because, and used it a few times to max BTs. It was part of the sequence I went through late last year showing scores impacted by going over 90%, in spite of a closed account with balance.

It also can provide you with a Chip+PIN card with the proper language on application.

Alas I got tired of the card so closed it a few months ago, and got my $500 cash back.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765

Anonymous · ‎06-06-2019

I'm sure that's true, but I have no desire to open a new account and I haven't opened one in years. It's not "worth" it to me to open a new account for testing purposes, where if I were able to take a current account down to a $500 CL I would do so for S&Gs. I wouldn't though if I couldn't get the CL reinstated at will, as there are times throughout the year where I'd need to put a > $500 spend on any/all of my current cards.

Revelate · ‎06-06-2019

@NRB525 wrote:
@Anonymousif you go to State Dept FCU, you can open a secured CC with as little as $250. The card has no BT fees, so you can load it up to 90%+ and see the fireworks. I opened a $500 secured in 2015 just because, and used it a few times to max BTs. It was part of the sequence I went through late last year showing scores impacted by going over 90%, in spite of a closed account with balance.

It also can provide you with a Chip+PIN card with the proper language on application.

Alas I got tired of the card so closed it a few months ago, and got my $500 cash back.

I did that with a Discover secured, then they graduated me at 7 months and increased my limit to 2500 and the happy testing time came to an end.

Also State Department had some weirdness when I was first starting, tried getting back in a few years back and flatly denied, I don't know what's up with that.

Kinda with BBS though if I'm going to open an account needs to fit in my testing cycle, and really another revolver doesn't help in that regard for me when what I really am chasing is mortgage score optimization and for that I probably need another installment loan.

kxkxkxx · ‎06-07-2019

I agree with pretty much everyone...it's ludacris that they would make that statement. You have obviously been very smart and responsible with your credit limit vs usage....sounds like a crap lender to me

Current FICO 8 Scores
EQ 759
TU 748
EX 744

Anonymous · ‎06-07-2019

OP here! The lender is www.rural1st.com

I am attempting to buy a home with large acreage in rural Kentucky. I believe this is a non-conforming loan unless the appraiser can find 3 comparables in the area which could be easy or difficult depending on the home I find. (Currently I can't find anything I'm interested in.)

I have been going to this lender because they are doing soft pulls for the credit check so it has been easy to see if I would qualify but I would think that I would get a better loan through a conforming loan if the property qualifies.

Anonymous · ‎06-07-2019

To qualify you just need to know what your DTI is. Once you know that you know what your price limit is. Then you can shop for a loan with any lender. Being that it's in the country though does add a couple of hurdles but, still their advice is not right.

https://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx

Fill out the calculator and see what it comes back with.

Then I would find a MORTGAGE BROKER in the area and let them shop around for you on a lender that will meet your needs. Give them copies of your mortgage scores and they should be able to do it w/o a HP.

Anonymous · ‎06-07-2019

@Revelate wrote:
@Anonymous wrote:
Unless the rate and terms were the super duper ie 2% apr 50 year loan with no closing costs I would look for a new lender.
Speaking as the co-owner and husband of the broker of a midsized Real Estate Firm 1) The model with low credit limts is a very old model I have not seen used in 20 years or longer 2) Alot of the lender with work with use auto driven score reviews ;If you have what the computer considers a) high enough score b) low enough dti c) long enough length of employment as long as its appraisals out you are done with very little manual review
The worst deal i recall FICO score 750 range , credit cards usuage under 1% utilization, income over $300,000, house being purchased $400,000, over $250,000 in savings, length of time at employer 20 plus years, 20% down . The first lender thought the buyer had to little credit and did not want to give them a decent rate so buyer went to another lender who grabbed the deal and gave them their best rate.
This was recently? When all the money is made in origination?

That profile would easily fly with Fannie / Freddie / FHA... I know humans can be awfully stupid sometimes but this is just dumb certainly in the market post mortgage crisis. Here someone else take my paycheck, please.

Um no.

+1 to everyone saying find a new lender.

I can't tell you the exact time but between 10 and 20 years ago ( pre meltdown)

Anonymous · ‎06-07-2019

@Anonymous wrote:
OP here! The lender is www.rural1st.com

I am attempting to buy a home with large acreage in rural Kentucky. I believe this is a non-conforming loan unless the appraiser can find 3 comparables in the area which could be easy or difficult depending on the home I find. (Currently I can't find anything I'm interested in.)

That is Farm Credit Services ie Farmers Home Administration. I have worked with them before any would never thought they would be that strange. The use to finance any rural house with atleast and acre and upto well over 1,000 acres. No problem then

Anonymous · ‎06-07-2019

My DTI is very low. 9000 a month gross with only about 600 in bills. How do I locate a good mortgage broker? How local do they need to be?

As far as the Farm Credit System, I believe that the people I've gone through (rural1st) ARE the Farm Credit System for my area. But I could have a misunderstanding of this.

SouthJamaica · ‎06-07-2019

@Anonymous wrote:
My DTI is very low. 9000 a month gross with only about 600 in bills. How do I locate a good mortgage broker? How local do they need to be?

As far as the Farm Credit System, I believe that the people I've gone through (rural1st) ARE the Farm Credit System for my area. But I could have a misunderstanding of this.

If I were you I would go to a credit union.