Scores and Mortgage Loans

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.

 

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.

 

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)?

 

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.

 

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.

 

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?
Becky

 

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.

 

Becky,

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.

 

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?


Mom

 

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.


Mom

 

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.



Mom