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I need 2 points right away!!!


BuildingForMortgages
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Yes, please do tell about what you call "rapid rescoring"

Thanks for all the advice. As far as the inquiries, I have a bunch of mortgage inquires about a month ago but they were all in the same 14 day period so they all only count as one. I doubt that I could get all of them off (although in the past it would have been more likely). Balance transfers probably won't work, I am at about the same utilization percentages for each of my 3 cards. My cash is tied up in the deal, so paying down balances is probably out as well.

I did try this however: I have an American Express Blue card. My credit limit was $2500. I went into their online account access and clicked on "request an increase" and when I got to the page I was told that I pre-qualified for an increase of $2100. All I had to do was click the button and I now have a limit of $4600 with a $100 balance. I am pretty sure that this should bring down my overall utilization numbers and possibly put me over that 2 point threshold that I need. Any thoughts on if you think this will do it? Also, anyone know how American Express goes about reporting to the bureaus? My statement ending date is on September 15th. Will the report the new limit then? How long should it take for it to reflect in my score?

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YES rapid rescoring works. Is it guaranteed to work? NO. So the broker who submits the rescore better know the credit scoring system and the direct effects of what will and what will not raise the score. Some items that are rescored can end up backfiring, and make the score go the other way.

I have personally taken a client from 512 to 609, and 508 to 624 on another bureau, within four days time, so it does work.

Is it a preferred method of doing business? NO! At $25.00 per bureau, per tradeline, it can get expensive, quick.

Reality for the original poster would be to disclose the type of mortgage he is trying to qualify for, and possibly change lenders, that will qualify for the mortgage with those scores. Has construction already been started? Are you looking at one time close products? Float down options, hard lock options? End loan only? There are numerous ways to structure the loan among numerous construction lenders.

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The type of mortgage I am qualifying for is a 100% loan from a niche construction lender who loans to owner/occupants of new constructions. He says that I may still qualify with the scores I have now, but 720 is some sort of threshold and the automatic underwriting prefers scores over this amount.

Construction has not already been started.

I also do not own the land yet, but I have a signed purchase agreement with binder to the owner (he signed it to).

The loan with be a 3 to 1 loan where I get the money for the lot at closing, then the contractor makes draws throughout different stages of the construction.

Float down options, hard lock options? End loan only?

Not to my knowledge.

amortgageman any help you could give to me would be greatly appreciated. I am going to PM you and hopefully we can speak on the phone.

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It is a bit confusing the way you said what you did, but if you have title to the property before construction starts, then the "take out" loan is/can be considered a refinance. The advantage to this is that sometimes 1+1 equals more than 2. If the lot is 50K, and the cost of the home from the builder is 200K, the appraised value of the combination can be 275K, so your LTV is 95%.

Charles

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I do not have title at this time. I will take title upon closing. The way the deal is working is that it is a one time close for the lot and construction. We then take draws against the loan throughout the construction period. Upon completion of the construction, the loan is converted into a permanent 30 year fixed loan. They are a niche lender and only deal with construction loans. So far they are the best that I have been able to find. They will be lending me based on the end appraisal of the house. Here are the complete details of the deal:

Purchase price of the lot: $130K

Aprox building cost for house: $250K

Apprised Price of finished house: $550K

The deal he presented me was for 90% financing of the total amount of the final appraised price of the finished house. Or 495K. That is a high number only because we have not finalized plans for the house or solid numbers for the construction cost.

I hope I have cleared this up, although I may have made it more complicated in my efforts. Any further information would be greatly appreciated.

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