Scores and Mortgage Loans

Discussion in 'Credit Talk' started by NanaC, May 19, 2001.

  1. NanaC

    NanaC Well-Known Member

    I've read a lot of the mortgage posts here but i am still unclear about the impact or importance of your scores on mortgage loans. Could you all confirm what I think I've gathered and add any other important info I might omit:

    1. The middle score is usually the one primarily considered.
    2. The impact of the scores is dependent on the type of loan.
    3. With a mortgage, the scores are just one factor of the credit report. (This isn't coming out right..what I'm trying to say is that they don't just look at your score and say "yea" or "nay." They also look at what the issues are on your reports.
    4. The reports for mortgages can sometimes contain different info than the ones we have with our fico scores through Equifax. I picked this up because I believe someone said an earlier deletion showed up on a mortgage credit pull.

    Thanks for you help.

    By the way, this was crazy...but my hubby's highest score was the ONE report with 3 collections..his lowest 2 had two collections. How wierd! Everything else was similar.
  2. eddie

    eddie Well-Known Member

    In 1998 I refinanced my mortgage. Because of credit issues I had to pay 9.75. Today I got a letter from the mortgage broker I used back then. They offered to pull my credit and said if my scores were over 620 I could refinance at 7.00.
  3. NanaC

    NanaC Well-Known Member

    Eddie: In your opinion, this was based solely on your scores? Or based on their letter,that is? BTW, congrats!
  4. eddie

    eddie Well-Known Member

    I have no idea if they can really do this but Monday Im gonna call and see what its all about. I do dread going through the mortgage loan hassle again but for a 2.75 point decrease on a 140,000 loan Ill jump through the hoops.
  5. steve

    steve Well-Known Member

    I don't know how accurate this is but will you be approved for most mortgages at good rates if your score is 650 or above (no collections, bk, lates)?
  6. MikeB

    MikeB Banned

    I think the "A" rates are closer to 680+, but different lenders have different policies. If you can't get "A" rates, I would consider looking at FHA financing.
  7. NanaC

    NanaC Well-Known Member

    Mine are 651-664 with a 5 year old chap 13 (dismissed) and 1 collection (ex-troll's wifes, not mine!) I've been good since the chap 13.

    So, I'll let you know what happens.

    I just want A loan (not an A-paper loan)...who knows..I might be looking for a very large cardboard box...
  8. the other

    the other Well-Known Member

    My middle score was about 640 when I got my mortgage back in October. I have no negative items on my reports, just lots of inquiries. I got a conventional loan with 3% down at the then going rate of 7.875.

    I stated in a previous post that the lender didn't question anything, but I just remembered, they did question the number of inquiries. I had to write a letter that said I was trying to bet better credit card rates, and that no new credit was issued as a result.

    This was through my credit union.
  9. Becky

    Becky Well-Known Member

    We have been going through this now. My husband & I have exactly the same credit.

    My scores went from Equifax 751 to Experian 520 & Tu 558.

    My HUsbands were Equifax 568, Experian 556 & tu 548.

    I had spent 6 months working on all three & Equifax only cleared up mine not my husbands.

    Of course we can not get a mortgage without 20% down. We tried the FHA & every lender in this area gave a different excuse. Most wanted our scores higher. With more reportable credit on them.

    We didn't want a ton of credit cards, but it seems if you don't you can't get a loan. If you do then you have to much outstanding credit & you have to pay more for the loan. Is there any sanity in all this?
  10. Momof3

    Momof3 Well-Known Member

    My middle score is 673, hubby's is 632 however that was while an item was being disputed still shown but not factored in the score, but if that doesn't turn out well then his middle score will be 617 and I was told they use the lower of the 2 middle scores which makes my 673 worthless:( However we still got a decent rate of 7.25 with those scores.
  11. judyputy

    judyputy Well-Known Member


    From what I have seen and read.... NO. It's all insanity.

    You can't know whether it's better to have a lower debt ratio or less cards with less open credit. I have about 29,000 in open credit on three ZERO balance cards right now, but don't dare close them because it jumps my debt ratio from 47% to about 80%. Want to take a guess which is more damaging to my scores??? I can't tell?

    It's all a crap shoot. You apply for the pre approval and hope they tell you what to do inorder to qualify.
  12. NanaC

    NanaC Well-Known Member

    Boy, it sounds like I have a "fun" time ahead of me. Hmmm. Maybe I want to rent. LOL

    I am waiting to hear..nothing so far.....
    We just got notice of a rent increase on our our moving date is up one month..not signing a lease for that.

    Mom...your posts always encourage me!
  13. Momof3

    Momof3 Well-Known Member

    Hi Nana,

    You mentioned they already pulled your merged reports correct?? Did they say when you will know? Just curious , I assume they don't use automated underwriting?? Normally with this, in atleast 2 occasions I got my results the same day the reports were pulled, but I guess if they don't use automated underwriting then this is a why you have to wait?

  14. NanaC

    NanaC Well-Known Member

    Hi, I'm writing from work! You know, Mom, they did pull them. But, he said in the letter that it might be up to 2 weeks so I guess they don't use automated underwriting.

    He has had the paperwork for about 1 week.

    ::::::::waiting is not my strong point::::::::::::;
  15. Momof3

    Momof3 Well-Known Member

    Waiting isn't my strong point either LOL. We are just waiting on the FHA appraiser, once that is done and completed then they will set things up with title company and began to arrange closing etc. I think the FHA appraisal was ordered last week, but they said they couldn't come out for 2 weeks, so I guess they will do it next week, I should know more by then.

  16. NanaC

    NanaC Well-Known Member

    It sounds like the light at the end of the road is getting brighter!! It is so great that you are leading the way on this for are my role model! :)
  17. Momof3

    Momof3 Well-Known Member

    Yes the end of the tunnel seems far away for now, but I am sure we will be in our house before we know it. I will be ready and willing to answer any questions you have about the long and stressful road.

  18. NanaC

    NanaC Well-Known Member

    As I was reading your writing, I started in my head...

    "The road is long..with many a winding turn...that leads us to.."

    LOL..anyway, you get the idea! :)

    I'll be humming that in my head all night!

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