I recently applied for a mortgage refinance with Principal Residential Mortgage, which happens to be my present mortgage company, never been late so I just knew it would breeze through. Wrong. I received a letter of denial yesterday stating my credit history was bad. So I called up Principal, she told me my scores were 717 Equifax, I have 741 through their web site, 660 Transunion, I have 680 threw their web site and experian was 660 which I have as 680 on their web site she told me my average was 660 score(explain how they got that average)-too low for conventional loan. But the kicker is my husband- I took a chance and added him even though I know he has so-so credit including a 9,000 judgement against him. WEll don't you know his mortgage score was higher than mine at 670 !!? PLus all his credit is as an authorized user on my accounts!!!! So after I told the agent that I was aware of scoring models and started asking questions, she statrted stumbling over all of her words and she said she would send it back to the counselor. I told her I could remove my husbands name of the application with his 9,000 lien, but then again maybe I shouldn't since he has a higher score than me using my credit!! Unbelievable! I am still in shock. Phyl
Doesn't the mortgage score include other factors, like length of employment, income, etc? That may have helped push your husband over the edge.
usually, from what I've seen, mortgage apps take the median score, that is the middle score, not the average score. Depending on the mortgage company, this could be the median score from the highest income person, or it could be the median score from the lowest of the scores. For what it's worth.
how long ago was the 9K C/O, also was it paid? Mortgage companies like to see a couple of years since charge offs (paid) regardless of scores.
Here are a couple of threads you can check out-- http://consumers.creditnet.com/stra...ostid=159725&highlight=for+newbies#post159725 http://consumers.creditnet.com/stra...2504&highlight=www.myfico.com+race#post152504 These will give you a lengthy, detailed synopsis of what "supposedly" is used to determine your mortgage score. And what is not. Notice that "income" is NOT considered. -------------------------------------------------------- This is from the FAQ section on www\.myfico\.com" target="_blank">www\.myfico\.com : What do FICO scores ignore? - Your race, color, religion, national origin, sex, or marital status. - Your age. - Your salary, occupation, title, employer, date employed, or employment history. - Where you live. - Any interest rate being charged on a particular credit card or other account. - Certain types of inquiries (such as promotional, account review, insurance or employment-related inquiries). - Any information not found in your credit report. - Any information that is not proven to be predictive of future credit performance. wajaba ----------------------------------------------------------
Wow, that is such a crock. They so totally take into account your occupation - if you are a licensed doctor - they could care less about your debt ration or your rating - know from personal experience on this one.
You know the mere fact that when I strted to question their scores she immediately reconsidered my app without any other documentation from Me. Also she proceeded to tell me that I qualified for a FHA Mortgage with a higher rate. This previous loan had awesome terms but it was a conventioanl. I told her no I will not consider it. 1.I am only asking to refinance 99,000$ our yearly income is over 130,000$. 2. No one yet can explain how my husband has a higher credit score than me when I make more, had credit longer, has paid off 3 cars, etc. Mind you every account except for 2 that my husband has are authorized accounts on my credit. I asked the loan person to explain to me how I was denied with a available credit of 89% on credit lines totaling 120,000, I have almost half of what I was asking for in my 401k with Principal Mortgage for God's sake! I mean it, if my loan is not approved, I am sueing . I think they got caught with that awesome rate and now want to back out cause rates have inched much further. Also with scores of 721, 660 and 685 how is my average score 660? I asked her and she said they had a different formula. Phyl
A RE-FI is supposed to be real easy...little paperwork. If I was you, I WOULD WALK... Take your business ELSEWHERE...
...MORE...I thought on a RE-FI...you didn't even have to really "QUALIFY" (EASIER TERMS)...THEY GIVE YOU MORE LEEWAY...
The only problem is the rates I had were excellent. It was a 3/1 ARM with a rate of 4.875. Since I will only be here for 4 more years it made sense. i have not seen this offer anywhere else. Phyl
My mortgage is conventional and my middle score was about 640. My mortgage is through my credit union.
Sounds like they may have been trying to bump you to the higher rate, more secure for them fha variety...
