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Pre-mortgage tune-up/increase: confirm my plan?

Just1Starfish
New Contributor

Pre-mortgage tune-up/increase: confirm my plan?

Hello.  A couple of score questions:

 

1. Does the "was 30 days late" notation fall off after 2 years of current payments? I have a 30 day late falling out of 2 year reporting this month, and the other one is in August.  Will that "was 30 days late" comment go away when the late itself is more than 2 years out?

2. I am in a DMP, and some but not all of my accounts have comments "managed by payment counseling service."   Should I try to have these comments removed even though the accounts are current in the DMP?

3. I have a couple of accounts showing as in dispute that are not.  How do I go about getting the "dispute" comment removed?

4. I'm a homeowner with a mortgage balance of about $242K.  After some major renovations, my house is worth about $345K.  I plan to sell this fall, and all existing debt will be paid off with proceeds. Current and future mortgage will be a VA mortgage.  My 3B mortgage scores from here are currently 633/643/672, greatly influenced by a 30 day late 1 yr 8 months ago, and by high utilization.   Because my DTI won't be an issue after the sale of this house, I'm trying to bump my scores before then to get a lower interest rate.  In looking at utilization/revolving/ installment, I think I have come up with the plan below to really focus on getting thresholds down.  I'd be interested in hearing comments from those in the know.  I have 5 open credit cards, 2 with 0 balance (zero's not shown on here).   Thank you in advance!!

 

Current debts:

 

Payoff orderBalancemo pmtinterest rateCLI/orig balanceutilRev/Inst
Paypal23226123.9928000.83r
Cap -1 Plat8752925.2415000.58r
Apple  card100792020000.50r
TSP loan16021712.37580000.20i
AFFIRM  33363729.994130.81i
AFFIRM  25016129.996780.74i
AFFIRM  19149229.9910970.83i
Discover loan608915313.99140000.43i
DMP256301068   i

 

 

Planted the garden: 11/1/2018
See what grows: 5/1/2019
Message 1 of 12
11 REPLIES 11
SouthJamaica
Super Contributor

Re: Pre-mortgage tune-up/increase: confirm my plan?


@Just1Starfish wrote:

Hello.  A couple of score questions:

 

1. Does the "was 30 days late" notation fall off after 2 years of current payments? I have a 30 day late falling out of 2 year reporting this month, and the other one is in August.  Will that "was 30 days late" comment go away when the late itself is more than 2 years out?

2. I am in a DMP, and some but not all of my accounts have comments "managed by payment counseling service."   Should I try to have these comments removed even though the accounts are current in the DMP?

3. I have a couple of accounts showing as in dispute that are not.  How do I go about getting the "dispute" comment removed?

4. I'm a homeowner with a mortgage balance of about $242K.  After some major renovations, my house is worth about $345K.  I plan to sell this fall, and all existing debt will be paid off with proceeds. Current and future mortgage will be a VA mortgage.  My 3B mortgage scores from here are currently 633/643/672, greatly influenced by a 30 day late 1 yr 8 months ago, and by high utilization.   Because my DTI won't be an issue after the sale of this house, I'm trying to bump my scores before then to get a lower interest rate.  In looking at utilization/revolving/ installment, I think I have come up with the plan below to really focus on getting thresholds down.  I'd be interested in hearing comments from those in the know.  I have 5 open credit cards, 2 with 0 balance (zero's not shown on here).   Thank you in advance!!

 

Current debts:

 

Payoff orderBalancemo pmtinterest rateCLI/orig balanceutilRev/Inst
Paypal23226123.9928000.83r
Cap -1 Plat8752925.2415000.58r
Apple  card100792020000.50r
TSP loan16021712.37580000.20i
AFFIRM  33363729.994130.81i
AFFIRM  25016129.996780.74i
AFFIRM  19149229.9910970.83i
Discover loan608915313.99140000.43i
DMP256301068   i

 

 


I don't know why you're concerned about the interest rate if you're going to be selling the house in a few months.  It would be a mistake to waste your time and money on refinancing with only 4 months or so left on the mortgage.

 

 


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 721 TU 747 EX 715

Message 2 of 12
Just1Starfish
New Contributor

Re: Pre-mortgage tune-up/increase: confirm my plan?

This isn't for a refinance.  It's a pre-tune-up for the new mortgage when this one sells.

Planted the garden: 11/1/2018
See what grows: 5/1/2019
Message 3 of 12
Revelate
Moderator Emeritus

Re: Pre-mortgage tune-up/increase: confirm my plan?


@Just1Starfish wrote:

This isn't for a refinance.  It's a pre-tune-up for the new mortgage when this one sells.


You may (well probably but I didn't confirm that on all mortgage models) get a bump at 2 years but it won't remove the notation.  

 

Sit on your hands, pretty up the debt out of proceeds, and then see where you are.  VA loans aren't highly score sensitive so your plan is fine just get as clean as possible but I suspect you'll make the score thresholds if you just stay the course and don't open anything else up.   Once it's paid you might be able to get the comments removed too and DMP does hold your score down.

 

You're going to have to get those dispute remarks removed, basically will have to call the bureaus.  There's a sticky in the mortgage forum for that.  I wouldn't do that right now I'd get the DMP sorted and then worry about the pre-UW details.




        
Message 4 of 12
SouthJamaica
Super Contributor

Re: Pre-mortgage tune-up/increase: confirm my plan?


@Just1Starfish wrote:

This isn't for a refinance.  It's a pre-tune-up for the new mortgage when this one sells.


OK then best things you can do now for your mortgage scores are

 

1. Try to get rid of negatives if possible.

2. Not apply for anything that could create a hard pull.

3. Let one bankcard report a balance between $10 and $99, while your other revolvers report zero.


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 721 TU 747 EX 715

Message 5 of 12
Just1Starfish
New Contributor

Re: Pre-mortgage tune-up/increase: confirm my plan?

Thank you. I'm familiar with AZEO.

 

However, that's not going to be possible in the time frame I have. What I was asking is if the plan in my first post is the best way to optimize my score between now and about August/September.  I will be paying off all debt with the proceeds of the sale of this house, and will then get to AZEO.  However, I'm trying to maximize my scores between now and then so as to get the best interest rate with the new mortgage.  Paying them off at closing is great, but that won't impact my scores BEFORE I get the mortgage, which is my goal. 

Planted the garden: 11/1/2018
See what grows: 5/1/2019
Message 6 of 12
SouthJamaica
Super Contributor

Re: Pre-mortgage tune-up/increase: confirm my plan?


@Just1Starfish wrote:

Thank you. I'm familiar with AZEO.

 

However, that's not going to be possible in the time frame I have. What I was asking is if the plan in my first post is the best way to optimize my score between now and about August/September.  I will be paying off all debt with the proceeds of the sale of this house, and will then get to AZEO.  However, I'm trying to maximize my scores between now and then so as to get the best interest rate with the new mortgage.  Paying them off at closing is great, but that won't impact my scores BEFORE I get the mortgage, which is my goal. 


Sorry I couldn't discern a plan in your original post.


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 721 TU 747 EX 715

Message 7 of 12
Just1Starfish
New Contributor

Re: Pre-mortgage tune-up/increase: confirm my plan?

From my first post.  The plan is the table right below it.  

 

<<<In looking at utilization/revolving/ installment, I think I have come up with the plan below to really focus on getting thresholds down.  I'd be interested in hearing comments from those in the know. >>>

 

I'm sorry if my post wasn't clear......I'm not sure how I could re-word it to help. It makes sense to me, but then I guess it would. 

 

What I am asking is if the payoff order in the table in post #1 represents the best way to get thresholds down in the next 3-4 months to improve my scores and thus get a lower interest rate.  I will be paying off all debt at closing when my current house is sold, but that will take 30-45 days to be reflected in my scores.  Like many people, I will be closing on the house I am selling in the morning and the house I am buying in the afternoon. 

Planted the garden: 11/1/2018
See what grows: 5/1/2019
Message 8 of 12
SouthJamaica
Super Contributor

Re: Pre-mortgage tune-up/increase: confirm my plan?


@Just1Starfish wrote:

From my first post.  The plan is the table right below it.  

 

<<<In looking at utilization/revolving/ installment, I think I have come up with the plan below to really focus on getting thresholds down.  I'd be interested in hearing comments from those in the know. >>>

 

I'm sorry if my post wasn't clear......I'm not sure how I could re-word it to help. It makes sense to me, but then I guess it would. 

 

What I am asking is if the payoff order in the table in post #1 represents the best way to get thresholds down in the next 3-4 months to improve my scores and thus get a lower interest rate.  I will be paying off all debt at closing when my current house is sold, but that will take 30-45 days to be reflected in my scores.  Like many people, I will be closing on the house I am selling in the morning and the house I am buying in the afternoon. 


Thanks for the clarification.

 

No that payoff order would not be the most advantageous for your mortgage scores.

 

The best payoff order for your mortgage scores would be to get as many zero balances as possible as fast as possible, so that would mean paying off the smallest balances first.

 

 


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 721 TU 747 EX 715

Message 9 of 12
CyberChick
Valued Member

Re: Pre-mortgage tune-up/increase: confirm my plan?

Ohhhh. I think your plan is fine. It would be BETTER, if you would focus on getting some of the high utilization cards down before you sell, you can help your scores. I think you will be fine, and the other poster gave good advice on your plan.  It's really your utilization that will help, but you dont' sound committed to get any of it lower until you sell - if that's the case then, "it is, what it is."

 

Message 10 of 12
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