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Old 12-13-2011, 12:43 PM
 
1 posts, read 8,146 times
Reputation: 14

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Hi All,

My husband and I are scheduled to close on 12/22/11. Our loan will go into underwriting tomorrow, and my LO confirmed that everything looks great so far. Until. I got an email this morning about change in my credit scores, and my husband got his as well only to see our scores dropped 20 points!

We have not applied for any new credit of any kind, Our existing balances are higher by a few hundred dollars, no major purchases other than for day to day expenses like Gas, Groceries etc. We had 2 mortgage companies pull our credit for pre-approval, that includes our current lender we are in working with. When my lender pulled our credit during later November, our lowest middle score was 715 and now it's dropped to 698!

My Dec score: 708 (EXP), 720 (TU), 716( EQ) vs 720, 735, 730 (end of Nov)
Husband's Dec score : 685, 715, 698 vs 706, 716, 715 (end of Nov)

Our scores have dropped 20 points! but our DTI has lowered! I'm freaking out as we are so close to closing, and fear if our lender will back out due to this on the day of closing. We can't afford to extend closing as we have $100 per diem per day for closing and also don't want to risk our earnest money (we were thinking of removing the loan contingency after we get clear to close, but now I'm doubtful).

Any help on how to handle this situation would be greatly appreciated

Thanks!
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Old 12-13-2011, 01:33 PM
 
Location: Plano, Texas
1,673 posts, read 7,003,108 times
Reputation: 697
Not much you can do. What type of loan are you doing? If doing a FHA/VA loan, then dont worry. The lower fico scores will have no impact. If you are doing a conventional loan, you will either have to pay a little more in closing costs or take a slight bump in rate...125 to .25%.

The lower DTI is a bigger positive than the lower fico score being a negative.
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Old 12-16-2011, 03:07 AM
 
Location: Anchorage
836 posts, read 1,772,203 times
Reputation: 887
Quote:
Originally Posted by NatashaReddy View Post
Hi All,
I got an email this morning about change in my credit scores, and my husband got his as well only to see our scores dropped 20 points!
I wonder if they did a refreshiment-pull before the underwriting decision - that could have caused it.

Or you can try to pay off some of the balances (if you can) - that can help to bring it back up...

but, unless you were on the border line, that drop might not mean any changes in rate, etc. imho
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