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Old 01-26-2009, 08:30 PM
SYS SYS started this thread
 
339 posts, read 1,113,800 times
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In today's dire economy, it's obvious that mortgage lenders are more strict on who they lend the money to, so I'm wondering what's consider pretty "safe" in terms of the borrower's credit scores given the current worsening situation?

Also, I don't understand why our credit scores dipped a bit within this past year in spite of having excellent credit history for years -- always paying all of our credit card bills on time and the whole amount, no delinquency, no nada. I stopped working about a year ago for family reasons while my wife's continuing to bring in about $120,000 gross income a year. Is that why, one person income? I don't get this scoring business...
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Old 01-27-2009, 12:40 AM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,940,048 times
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720 or higher.

FICO scoring changed.

http://www.google.com/search?hl=en&q...hanged&aq=o&oq=
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Old 01-27-2009, 09:44 AM
 
Location: Seattle, WA
293 posts, read 983,802 times
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I bought my first condo last fall. My credit score is 750 and I didn't have any problems getting a mortgage. However I had to put down a 5% down payment. All in all it was very worth it. Now is a very good time to buy. Good luck!

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Old 01-27-2009, 09:53 AM
SYS SYS started this thread
 
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Thank you for your helpful responses. Our credit scores from all three agencies were all above 700 a year ago. I've recently noticed, however, that a couple of them dipped below 700 for the first time. I don't get this, since nothing has changed in the way we've behaved. Our current scores are:

TransUnion = 688
Experian = 744
Equifax = 698

We're planning on purchasing a house in about a year from now with somewhere between 20-30% downpayment. Do you foresee that, given the current scores, we'll be faced with difficulty in securing a mortgage? Would it be helpful if I ask my current mortgage lender, National City Mortgage, to work with us when we relocate?
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Old 01-27-2009, 10:31 AM
 
Location: central, between Pepe's Tacos and Roberto's
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A 690 mid-FICO will not secure you the absolute best rates, but so long as there are no other issues with your scenario you should not have a problem.
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Old 01-27-2009, 10:38 AM
SYS SYS started this thread
 
339 posts, read 1,113,800 times
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Quote:
Originally Posted by Daddys///M3 View Post
A 690 mid-FICO will not secure you the absolute best rates, but so long as there are no other issues with your scenario you should not have a problem.
Well, that's a relief to know. However, since I have about a year's time to "improve" the scoring to get better rates before the purchase time, I can work on them.
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Old 01-27-2009, 11:07 AM
 
28,461 posts, read 79,155,876 times
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I would like to see the whole credit report. My guess is that TU might have some data that is not accurate and/or that they have some accounts assigned solely to you and not your wife. Also review her report.

The odds of your scores going down increase with falling income, and the some formulas seem to be toward household income instead of individual, regardless of whether you are joint account holders or individual. I suspect that if this was happening to your wife you could file a discrimination suit but if it happens to guys...

But seriously, the key is almost certainly an incorrect entry. That is a fairly big gap between scores -- the 744 is thisclose to the golden territory north of 750 , while 688 is not what lenders will leap for joy over...
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Old 01-27-2009, 11:53 AM
 
Location: Casa Grande, AZ (May 08)
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Also, remember that just paying your cc bills in full every month is not only what matters. If you have been charging more (even if you pay it off) each month, THAT is what is reported on your report each month. Utilization of available credit is 30% of your score. To avoid this issue, make payments twice each month...once BEFORE the statement cuts, and then another after (otherwise you ll get a late payment!). This way the amount of credit being used shows as a lower amount which will help your utilization. Also, do check for inaccuracies as was suggested. Finally, if you have a year before you are buying...try adding a little credit availability to your profile (get a new card or two). This will help that utilization I was talking about, but make sure and do it soon since new credit will hurt your score in the short term, but help 6 months+ out.
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Old 01-27-2009, 01:16 PM
 
28,461 posts, read 79,155,876 times
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Default Might not be wise move...

Quote:
Originally Posted by sh9730 View Post
Also, remember that just paying your cc bills in full every month is not only what matters. If you have been charging more (even if you pay it off) each month, THAT is what is reported on your report each month. Utilization of available credit is 30% of your score. To avoid this issue, make payments twice each month...once BEFORE the statement cuts, and then another after (otherwise you ll get a late payment!). This way the amount of credit being used shows as a lower amount which will help your utilization. Also, do check for inaccuracies as was suggested. Finally, if you have a year before you are buying...try adding a little credit availability to your profile (get a new card or two). This will help that utilization I was talking about, but make sure and do it soon since new credit will hurt your score in the short term, but help 6 months+ out.
If OP has stopped working he will have no personal source of income, and there is a fairly good chance any automated credit approval will get kicked on that alone.

Rejected apps hurt score.
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Old 01-27-2009, 01:20 PM
SYS SYS started this thread
 
339 posts, read 1,113,800 times
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Would it help then to apply for the mortgage with my wife being the sole applicant rather than joint?
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