Working on Credit Score.....

wnlbutterflyMarch 11, 2004

I think I did something right. The lender was surprised hubby's numbers were so low with the small amount of debt we have, and I have been researching using creditnet (great site).

Anyway, we had one Credit Card, which he had recently paid off and it hadn't been reported as paid, so it is one that would have shown that the card was about 100% over limit (limit was $250...late fees/interest jumped it up to $479), so now that will be removed.

And today I decided to send in an extra payment to the other credit card that is on hubby's account. The Limit on it is $500, and it was at $400, so sending in an additional $200 payment. I figure that will take our "utilization" to some better numbers, spending limit= $750, used was $879, and now it will be only used $200. And since that is 30% of the FICO scoring, that surely will help.

I am hoping that when it is time to actually sign lender papers for our mortgage, and they pull the final credit report it will be better numbers and maybe a smidge better interest rate, although I am pleased with what we are getting at the moment, but better is always...well, better.

Laura

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dave_donhoff

GOOD JOB Laura,

NOW, if you want to have the credit improvements make a difference in your rates, here's what you need to do;

A) Get current account balance statements from each creditor you've paid down (call cust. svc & have them fax you a balance statement as a Memo on letterhead if necessary,)
B) Forward these to your Loan Officer and have him/her do a "Rapid Rescore" for you through their credit agency,
C) Be sure to have the Loan Officer than price and lock your interest rate according to terms with the better scores.

If you wait until you're at the signing table, the score improvements won't make any difference in your rates.

Luck!
Dave Donhoff
National Mortgage Broker/Banker

    Bookmark   March 11, 2004 at 3:14PM
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vonrouge

If you wait until you're at the signing table, the score improvements won't make any difference in your rates.

Does this apply in all cases, or only when a person has been preapproved based on the previous, lower scores?

And hey, Dave, I see you're not "just some mortgage guy" anymore!

    Bookmark   March 12, 2004 at 1:53PM
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dave_donhoff

Hi vonrouge,

Does this apply in all cases, or only when a person has been preapproved based on the previous, lower scores?

Well, there could theoretically be an exception... but I've yet to see a lender voluntarily reduce an interest rate after their loan docs have been drawn. Without a broker badgering them, and without competitive pressures, lenders would happily write the deals as fat as they could get away with.

And hey, Dave, I see you're not "just some mortgage guy" anymore!

OOPS! That was a "Freudian Slip" of the signature-file trigger. I hit "D" instead of "S" (my code access for the "Some Mortgage Guy" sign off, and once "submitted" it was irretrievable. Hope Spike will overlook ;~)

Cheers,
Dave Donhoff
Just some mortgage guy ;~)

    Bookmark   March 13, 2004 at 6:06PM
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wnlbutterfly

THANKS DAVE....I emailed the mortgage broker, asked about "rapid rescore". Also found out that two of the bad marks on the credit report is due to billing error (medical) and also mentioned this, and she was estatic, said to fax all the info and she will take care of it. So our utilization should be improved and having two bad tradelines removed (or at least explained....should be removed soon after all my letters), should help our bottom line on the mortgage.

THANKS again...I wouldn't have known if you hadn't mentioned it!! Laura

    Bookmark   March 29, 2004 at 9:55PM
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