Selling Home, Renting, then Buying - kill my FICO2 score?

[Anonymous]

Current homeowner, looking at moving to a new area. Was planning on buying a new home then selling my current home once I move, but now thinking that we might rather temporarily move into a rental in our area instead of buying, since we haven't found the right house yet.

However I'm worried that selling my current home and closing out it's mortgage will kill my score for the new mortgage. I see lots of horror stories about people who claim their score dropped 50-80 points after paying off their mortgage (though they usually aren't clear what model they are using). My mortgage is my only installment loan, but I have many credit cards.

I feel like this must be a common situation, to rent in between homes, but I fear it may destroy my score due to lack of credit mix the day my original mortgage loan is paid off when I sell the home. Am I right to be concerned, or is this situation somehow mitigated for mortgage lending?

[FlaDude]

I went from owner to renter last year and only had a 10 point FICO 8 score decrease when the mortgage was paid. I had refied not too many years prior so my utilization on the mortgage was still over 90%. I also had other installment loans (car and debt consolidation). What percentage of your mortgage is paid so far? Hopefully others will chime in with their thoughts regarding how much of a hit you might take having no other loans. I'm not too familiar with the topic, but you might want to search here on the topic of SSL loans to have an installment loan on your report.

[Anonymous]

Being able to sell your current home while at the same time purchase a new one without having to rent for a month or two is almost unheard of, i think. So i'm not sure there's any way around taking a score hit for the paid Mortage. I don't know why it would be as much as 50 points though. I realize it's all profile dependant on how much it affects you, though i wouldn't think the brunt of the damage would happen until said new mortgage reports. Causing a HP,  adding a new account and at max UT. 

Given that your Fico2 score is 757 even as low as 10-20 point drop is going to affect a person, possibly into that higher rate bracket. So I understand the concern. That said, I've heard that 720-740 are still pretty good score range for a Mortgage. 

As for the SSL, it would help with scores once it reports at 8%. Though you'd be taking a new HP and new account hit all right before an impending Mortgage. I don't know what the damage of all that activity so close together would be. 

I too would be interested to find out the affects.