DenverGirl

Minimum FAKO Score in today's market to qual for mortgage?

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Does anyone know what a minimum FAKO score may be to qualify for a 30 year fixed mortgage in today's market?

I will be putting 15 - 20% down and mortgaging $65,000 - $80,000.

Reason for asking is that I pulled my True Credit report this am and my TU score dropped unexpectedly by almost 50 points!

Scores as of today:

TU-571

EX-574

EQ-633

Nothing changed - no new baddies, nothing dropped off - only a CA updated to paid recently.

Thanks!

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Depends on where exactly you live -- where I live in S. California, I am sorry to say, there are no mortgages available for your scores. From what I understand, no one is being considered with less than a 675.

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I met with my banker - I am most likely going through them..

I was completely up front with her about my scores and the things on my report.

Since I have a substantial downpayment, she said they should be able to work with my scores...but that was before the sudden 50 pt drop in TU.

I am so frustrated. I am trying to clean up my credit - and pay all legitimate debts - yet my scores are going down and not up.

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It takes time, DG. 50-100 points should be doable in 6 months to a year. Getting to the mid 600s happens relatively quickly but breaking 700 seems like an eternity.

You're frustrated today, but the good times will come soon. It's a very up and down process. Keep us posted and keep reading/asking questions!

Be glad you have good rapport with your lender.

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Thanks Leslie.

My scores have gone DOWN since I started...so it is very frustrating, as I have not added any debt or negatives - just corrected address info and paid medical collections.

I hope the the 50 point drop in TU won't kill me for the mortgage - I have worked very hard to get ready to buy.

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Have you pulled your fico scores lately? My fico scores usually run 75 to 100 points higher then my fakos. I guess thats why they call them fakos! Since you are considering applying for a mortgage it might be a good time to do that.

Also, when an CA acct. updates to a paid status, your score can & probably will drop--happened to me.

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Thanks Leslie.

My scores have gone DOWN since I started...so it is very frustrating, as I have not added any debt or negatives - just corrected address info and paid medical collections.

I hope the the 50 point drop in TU won't kill me for the mortgage - I have worked very hard to get ready to buy.

DG, as the next poster points out, make sure you are dealing with FICOS only, from www.myfico.com (even though those aren't the same numbers your lender will see -- they're the best predictor of what she will make her decisions based upon).

Credit scores are like the wind, esp. during repair and rebuild. I have all but one negative deleted and have obtained close to 10K in prime credit since Jan 1., but I don't plan to pull until July just because I know they need time to stabilize. There is a good post around here somewhere about EXACTLY what you need to do six months before a mortgage application...but basically, don't even think of applying for any new credit, and keep your utlization at 1-9% - do not exceed that - on all of your cards. And, it goes without saying, pay everything on time.

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DG, as the next poster points out, make sure you are dealing with FICOS only, from www.myfico.com (even though those aren't the same numbers your lender will see -- they're the best predictor of what she will make her decisions based upon).

Credit scores are like the wind, esp. during repair and rebuild. I have all but one negative deleted and have obtained close to 10K in prime credit since Jan 1., but I don't plan to pull until July just because I know they need time to stabilize. There is a good post around here somewhere about EXACTLY what you need to do six months before a mortgage application...but basically, don't even think of applying for any new credit, and keep your utlization at 1-9% - do not exceed that - on all of your cards. And, it goes without saying, pay everything on time.

I'd like to see that post about exactly what needs to be done prior to obtaining a mortgage. I need to refinance within a few months. Anyone know where it is??

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Depends on where exactly you live -- where I live in S. California, I am sorry to say, there are no mortgages available for your scores. From what I understand, no one is being considered with less than a 675.

There are some very good programs still available with a 580+ score, Of course the higher the better the rate, but does not have to be that high of a score.

Charles

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Nothing changed - no new baddies, nothing dropped off - only a CA updated to paid recently.

That will do it... makes it more recent when they update it, so instead of being an old collection that is affecting your score less and less, it is now a recent collection, even though you paid it off. What a great system huh? Further punish those who try to do the right thing.

Anyway, just use this to your advantage. Write a nice suck up kiss A$$ letter to the collection company explaining how wonderful they were with working with you to get this resolved, etc etc, blah blah. Then explain how your score actually dropped 50 points after they updated your file and it is now preventing you from obtaining the mortgage you were working on. Then tell them that as you understand it, the Fair Credit Reporting Act DOES NOT demand that all accounts be reported, only that any account that is reported be reported accurately. Therefore, a company DOES have legal discretion and permission to remove any account it chooses from the credit report, and you're hoping that they will do that in your case as a goodwill gesture and remove the account from Experian, Equifax, and Transunion. Then thank them for their further assistance in helping you get your life back together, blah blah blah. Send it certified mail and recheck your report every week after you get confirmation that they've received it.

Has worked for me 100% so far, ending in removal within 2 weeks, but as always.... Your Mileage May Vary.

Good Luck!

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Firstsource - would those mortgage options be in a 30 year fixed? I would like to put 20% down, but my loan will be small - in the $65,000.00 range. How badly could I expect to be penalized in my interst rate?

Maxed - that is encouraging news. I sent off disputes to the CRA's last week asking them to validate some of the old collection accounts - and I hope some fall off that way. I will see what happens and try the letter you suggest.

Did the CA's you were dealing with just stop reporting, or did they actually respond to your letter?

It is so frustrating as you say to do the right thing and get penalized.

All of the medical collections were from an auto accident that was not my fault. Believe me, insurance did not cover these bills - and the other driver walked away with no damage to his credit.

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I know for sure one of the letters was actually responded to saying they were removing the collection account, the other times I do not remember getting anything back from them. They just removed the collections from my credit report shortly after receiving my letters. They may have sent responses, but the only response I cared about was seeing the collections disappear from our reports. The goodwill/suckup letters work well for paid accounts as the CA has no reason to keep it on your report after that. They also have no reason to remove it from your account either, hence the "sucking up" part of the letter.

Let me know how everything turns out.

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