My mortgage lender called me today to say he received approval for my mortgage contingent on the release of my California state tax lien. He gave me my scores: 711 Fair Isaac (Experian) vs 707 Credit Expert 672 Empirca vs 601 on TU website vs 668 eloan 668 Beacon vs 668 on myfico.com and 682 on Privista I'm very suprised the scores match up so closely (except for the TU internal score which obviously sucks.). Most people report dramatically higher mortgage scores than their "internet" scores would predict. One note to those who want to buy a house but also want to show usage on all of their credit cards. The lender takes all of your last reported balances and monthly payments and then assumes that those monthly payments are part of your total monthly obligations. I am going to stop using all but one credit card until my process is done. I have so many credit cards that all show small balances since I use them and pay in full each month. They all show monthly payments between $10 and $15 that are assumed to be monthly obligations. Also, while credit utilization ratios (%balances to % total credit limits) are important to scores they are not the ratios mortgage lenders look at. They look at total monthly payment obligations to total monthly income. That's why all of those little $10 and $15 payments count against you. I don't even want to talk about my new Amex (balance due every month) that I've been using the hell out of so I stand a better chance of getting upgraded. I'm not going to use my Amex again until after my loan closes. Last month I charged my monthly rent to it for the membership rewards points. That's going to look ugly when it hits my reports. Fortunately I have at least four month until everything closes so I can get all of these issues fixed first. I'll post more when I have new information.
congrats davelv!!!! Amex can be a pain in the butt sometimes. I use it alot because of the Rewards program. Some months, because of business travel, I can rack up 7-10K balances on that (even though it is paid each month) and depending on when Amex decides to report it, it can kill my utilization score. I haven't travelled since January, but Amex hasn't updated that account since 12/01, with a 8K balance! Come on Amex update, I have only 150 for you this month! lol Again, congrats.
Dave, You did real good, congratulations. & Thanks for posting your experience -- it gives me confidence for when DH & I start looking!
Davelv, are you doing a conventional mortgage or a nodoc? read the other post. never mind this post. thanks
To answer on this thread as well for the people who might not have read the other one, I am doing a conventional 30-year fixed with 5% down.
I think it's less "what scores do you need" and more of "what does my credit report show I owe" and "how has my credit been in the last two years". The interest rate you will pay will rise the lower your score is but in talking with my lender during this process I've come to the conclusion that they are interested in your total monthly payment obligations and if you have any creditors that could possibly replace them as the first lienholder on your property. If you are willing to pay the higher rates, your credit in the last two years has been positive and and there are no large charge-offs, judgements or liens on your reports I'd say you can apply no matter what your score.
