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Old 04-05-2018, 12:26 PM
 
70 posts, read 47,555 times
Reputation: 66

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Hello,

My partner and I got approved for a 4.75% interest rate, with a 13 k down payment for a 200k fha loan. We live in Colorado. There is not a lot of decent property we can buy for under 200k in Colorado with an fha loan. We met with our realtor yesterday. With the fha loan, our potential property inventory list drops down to 10 condos in CO all under 500 sq ft.

His fico 5 mortgage score is a 680 and my fico 5 mortgage score is a 610, which is 10 points below their credit requirement for obtaining conventional loan. Our fico 8 scores aren't too bad. His is in the low 700s and mine score is a 650.

Our lender said that my fico 5 score was 10 points below the requirement due to two credit cards with high balances. I paid these credit cards down as suggested. I called our lender today to inquire about a rapid rescore and he said that it's against the banks policy to do a rapid rescore. From my research, the banks/ lenders are only allowed to do this. I can't order a rapid rescore for myself online. I have a fico account but the mortgage score only gets updated quarterly. The next update is due in June. Our lease expires in June and we need to be looking for a house now.

I don't understand why our lender wouldn't want us to get approved for a better loan (conventional) with a better interest rate. My fico mortgage score is not great but i've been paying off the balance/ not using the cards at all.

Is our lender not doing the rapid rescore a red flag?
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Old 04-05-2018, 12:51 PM
 
Location: Phoenix, AZ
2,813 posts, read 1,321,125 times
Reputation: 7188
Reality check. Your credit scores indicate a marginal risk at best and that's the problem. High credit card balances are certainly a factor but are there other delinquencies and defaults on your credit reports?


Paying down large balances isn't going to change your scores appreciably overnight and your lender knows that it's just going to be a temporary fix and not likely to change your habits going forward.


You may have to resign yourself to renewing your lease, significantly paying down your credit card balances and saving up a much larger down payment. Then try again next year.
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Old 04-06-2018, 11:30 AM
 
3,806 posts, read 8,253,264 times
Reputation: 4943
Quote:
Originally Posted by Avangeliz View Post
Hello,

My partner and I got approved for a 4.75% interest rate, with a 13 k down payment for a 200k fha loan. We live in Colorado. There is not a lot of decent property we can buy for under 200k in Colorado with an fha loan. We met with our realtor yesterday. With the fha loan, our potential property inventory list drops down to 10 condos in CO all under 500 sq ft.

His fico 5 mortgage score is a 680 and my fico 5 mortgage score is a 610, which is 10 points below their credit requirement for obtaining conventional loan. Our fico 8 scores aren't too bad. His is in the low 700s and mine score is a 650. Fico-5 and Fico-8? What did the lender pull?

Our lender said that my fico 5 score was 10 points below the requirement due to two credit cards with high balances. I paid these credit cards down as suggested. I called our lender today to inquire about a rapid rescore and he said that it's against the banks policy to do a rapid rescore. I can do this for you right now and have new scores Wednesday if not sooner. Your lender sucks. From my research, the banks/ lenders are only allowed to do this. Nope. I can't order a rapid rescore for myself online. I have a fico account but the mortgage score only gets updated quarterly. The next update is due in June. Our lease expires in June and we need to be looking for a house now.

I don't understand why our lender wouldn't want us to get approved for a better loan (conventional) with a better interest rate. My fico mortgage score is not great but i've been paying off the balance/ not using the cards at all.

Is our lender not doing the rapid rescore a red flag?
They don't want to pay for it. It might be a short-sighted branch manager penny-pinching his P&L.

I literally do CBUs with every client. I don't care if you have a 740k, let's improve it. Never charge the client.

Change lenders.
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Old 04-09-2018, 07:44 AM
 
7 posts, read 5,425 times
Reputation: 15
I would consider working with a lender that offers the "Rapid Rescore" option and do not wait until next year when rates are on the rise. Not every lender will offer this or be willing to wait 60 days.
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Old 04-12-2018, 04:12 PM
 
Location: Las Vegas, NV
45 posts, read 29,652 times
Reputation: 60
The only reason I could think that he may not want to do a rapid re-score is because they cost money. In the $100's for us. we always do them though as is better to get a loan than having the borrower shop around for a new lender. Just shop around for a new lender who is willing to work with you.
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Old 04-12-2018, 11:22 PM
 
Location: South Carolina
234 posts, read 138,833 times
Reputation: 366
I agree. Shop around. The rapid rescore is expensive and the borrower is not allowed to pay for it. Find a lender willing to go the extra mile for you.
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Old 04-13-2018, 06:50 AM
 
Location: MID ATLANTIC
8,139 posts, read 19,989,830 times
Reputation: 9377
If you have paid down the balances, when the account cycles for the next month with each of the bureaus, the score should come up. The key is how far down did you pay them down? Ideal target is 25% of limit, but just under 50% of limit will have impact. Do not close any revolving accounts. I think you can do this naturally, but I also do not know the dates you paid down your balances.
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