All: I'm in the process on bidding on a home. The issue I'm having is that my credit scores are just below what I need to qualify for an "A" loan. I'm at 636/EQ, 656/EX & 640/TU. I've paid down my balances to 25% of utlilization, which should increase scores to mid-600s. My biggest problem right now is that the lending companies don't want to see late pays over the course of the past twelve months, which I have. The companies I have late pays with are Cap 1, Cross Country Bank and my auto loan company, Triad Financial. Does anyone know how to remove late pays? Does anyone have any experience in dealing with any of these three companies? Any help would be appreciated as I need to get these scores to 660+ within the next 60 days and it's going to take some quick work to do it. I appreciate and help in advance. Thanks.
You can try disputing, but you don't have that much time if you are planning on purchasing within 60 days. Your scores are fine right now. You can still get a great rate. You mention that you need a 660+. Is that for rate, loan to value, going stated or no ratio, or are you purchasing over 1 M? If it's just for rate...go for it with what you have. If you found the house you want...buy it now and refi in a year or so. You want to make sure that you get a loan with a 1 or 2 year pre payment penalty if that's what you are going to do. Have your lender help you with letters of explanation regarding your late payments. You've come along way with your scores...don't stress over it!
The 660 is for rate only. The plan today is to go with a "B" loan and pay a bit more until I can take care of the late pays. I anticipate closing in 60 days so I'd like to qualify for the "A" loan in that time frame, if possible. Your recommendation is exactly what the lender had suggested. I'm just hoping to kick the scores up a little to avoid having to refinance 6 months from now. Thanks for the reply.
You really aren't getting a "B" loan. If you want to get technical true A is above 680, some 720+. Your broker can do a rapid rescore if your credit score is going to improve. Usually the lender will submit your loan (and your selling agent will probably request a loan approval 10-14 days into your purchase agreement) and they will approve you with the 640 mid. Lender can and probably will run another credit before you close (backup credit). But as we all know it can take more than 60 days to get these things removed. Just be careful that entire tradelines don't go bye-bye. Remember your prepay as well. I would suggest getting a MTA or COFI type loan. Ask your broker about it. It can start at about 1.25% (depending on product). That rate will be good for a year. Take a year prepay (you can ask for no pre, but it will cost you). That will keep your payments down and you will be getting a great rate for a year. Then refi into what you'd like. Best of luck!
Um, why are you trying to beat the system when you have indeed admitted that you were late? Only good payments on time, will cure your FICO issues.
