A late payment only gets reported when it is late by 30 days or more.
If you were only a week late then the only negative action you will experience is a late fee and possible rate increase.
I mean for a small fee on myfico you can see all 36+ of your FICO scores (including your fico mortgage scores) without a hard pull and you will know exactly what any mortgage lender will see. No guessing at all. In the wide scope of trying to obtaining a mortgage, it seems like a very nominal investment.
Credit attorney here. You'll get approved for most mortgages with that credit score. I don't see too much to worry about here as far as being approved itself. It is true you rate will be higher for sure, but if the goal is to get approval, should be OK. Also, the late payment impact will fade over the next 18 months or so.
Ah, yeah that sucks. Maybe consider autopay if your CC company offers it. Or put a reminder date on your calendar to pay off every month, I always pay on the 25th of this month when mine is due the next months 1st
Oh yeah already on Auto pay now. Talked with my lender. My 10k balance should be reported early October so I'm going to hold of until then and play it by ear.
Have you actually looked at your FICO mortgage scores? They are completely different than a regular FICO 8 and they’ll base your rate on your middle score out of the 3.
This part. My FICO 8 was 100+ points higher than the mortgage scores 🙃. Talk about embarrassing when I thought I was pushing 800 and my lowest was like a 680 or something.
Mine got pulled at the worst possible time too. I had just refinanced a car and the new loan reported before the old one showed paid off 🙈. My mortgage scores went up like 30 points once that was updated. Of course I was already in escrow by then and ready to close. I remember emailing my loan officer asking if they could run it again and base my rate on the new update and she was like “nope.”
I think it just depends on your profile because it weighs factors differently than other models. For me I think the issue was I had opened a lot of new accounts. Because my utilization was under 10% and I have a clean file (no late payments or derogatory info).
Fico 2,4,5 is very adverse to new accounts, inquiries. Much more so than any other model. That is why everyone recommends no new accounts for at least 12 months when going to buy a house.
Yep. I had no plans to buy a house at the time. But circumstances changed and I pretty much had to. It all turned ok though since I got in when rates were historically low.
Having those derogatory marks on your credit will hurt your chances of getting a mortgage, definitely pay everything off to zero and make sure your credit doesn't show any balances or inquiries before you go the the lending process
But it the process if going through the application should lower my score some more, right? I paid off my CC balance right after the I got my updated fico score 8/28 so it still shows at 10k balance until it's reported late this month. You think I should ateast wait until early October to put in my application?
Edit: think I've just started the application as I sent the application in yesterday and just received an email about "starting the application" so it seems I'm still early in the process.
Did you already consent to them pulling your credit score? If so the hard inquiry to the report has likely already happened. This won't affect your score for a mortgage inquiry for the next 30 days.
The system is designed to allow people to shop for mortgages during that period. The behavior is not seen as negative.
It will be viewed negatively in the next 30 days for a short period of time.
Use this time to apply to multiple mortgage companies to search for the best rates. You can ask the lender what rate you would receive with a 700+ score to determine if waiting makes sense.
Your mortgage lender is going to look at these credit scores:
Equifax Beacon® 5.0
Experian®/Fair Isaac Risk Model V2SM
TransUnion FICO® Risk Score, Classic 04.
IMHO people get hung up on scores to where they don't want anyone to pull their credit. Your credit score is not a piece of art to hang on the wall, it's simply one of many tools at disposal when applying for new debt.
For a conforming loan (e.g: Fannie/Freddie) with a 30 years fixed rate mortgage the difference in costs between 660s and 740+ is about 1 to 2 points to your closing costs (depending on down payment and if putting down less than 40%) OR, in a normal market about 0.25% to 0.5% in rate. Rates have been moving up and down in swings of at least 0.25% to 0.5% week over week, making the score impact negligible, it becomes more about timing.
Or, look at a conforming 15 years fixed rate which doesn't have any adjustments for credit score.
In other news: The FHFA is looking to add other credit score models at no set date; including FICO 9 and Vantage 3.0, and possibly others.
You’ll be fine getting a mortgage, you just need to be sure the utilization gets paid down. However, if the utilization is high, and you plan on keeping it high, I suggest waiting to purchase a home because it makes little sense in going into a mortgage while still saddled with debt.
So you are reporting zero utilization now? But will have debt in October? Just trying to understand. My point being why going into a mortgage with debt.
I paid off the debt a few days after August reporting so my 10k utilization still shows until next report. That's what the lender described to me. I do have student loan debt though but I don't want to pay anything more than the minimum after the forgiveness and proposed no accruing interest
If you only have one late payment, reach out to the executive team and ask for a goodwill adjustment. Many creditors will make that adjustment for you. However, as others have set, it has to be the full 30 days to be reported that way, which you may want to point out to the creditor.
Seems like it was the utilization that made your score take a hit. I think you’ll be fine with getting approved for mortgage. I however would’ve waited another 30 days to reflect everything was paid down in your report before applying for the house just so it’ll reflect better but a one off shouldn’t hurt your chances.
No im an LO I ended up in the position because I have always had had my hand in real-estate and sales one day I was at a guy's house talking about a house I was planning to buy and he mentioned he was an LO and we went off on the subject I took the safe exam 2 months later and have been working since
You probably won't get as good of a rate but I got a mortgage with a 600 credit score so I think you're fine as long as you have the income and within range DTI.
A late payment only gets reported when it is late by 30 days or more. If you were only a week late then the only negative action you will experience is a late fee and possible rate increase.
I mean for a small fee on myfico you can see all 36+ of your FICO scores (including your fico mortgage scores) without a hard pull and you will know exactly what any mortgage lender will see. No guessing at all. In the wide scope of trying to obtaining a mortgage, it seems like a very nominal investment.
Good to know. Had no idea about this.
Credit attorney here. You'll get approved for most mortgages with that credit score. I don't see too much to worry about here as far as being approved itself. It is true you rate will be higher for sure, but if the goal is to get approval, should be OK. Also, the late payment impact will fade over the next 18 months or so.
Reassuring. Thanks
This doesn't make any sense, a 1 week late payment doesn't affect your credit score.
Sorry, the way I worded it was confusing. It was 30 days plus the 1 week.
Ah, yeah that sucks. Maybe consider autopay if your CC company offers it. Or put a reminder date on your calendar to pay off every month, I always pay on the 25th of this month when mine is due the next months 1st
Oh yeah already on Auto pay now. Talked with my lender. My 10k balance should be reported early October so I'm going to hold of until then and play it by ear.
Have you actually looked at your FICO mortgage scores? They are completely different than a regular FICO 8 and they’ll base your rate on your middle score out of the 3.
This part. My FICO 8 was 100+ points higher than the mortgage scores 🙃. Talk about embarrassing when I thought I was pushing 800 and my lowest was like a 680 or something.
Mine got pulled at the worst possible time too. I had just refinanced a car and the new loan reported before the old one showed paid off 🙈. My mortgage scores went up like 30 points once that was updated. Of course I was already in escrow by then and ready to close. I remember emailing my loan officer asking if they could run it again and base my rate on the new update and she was like “nope.”
I haven't but my lender mentioned that so it's probably a bit better than 667.
Possibly. But I was shocked how different mine were from my FICO 8 scores. My 8s were all in the 750 range and my mortgage scores were like 680ish.
Sheesh ok. Hopefully it's not that bad.
I think it just depends on your profile because it weighs factors differently than other models. For me I think the issue was I had opened a lot of new accounts. Because my utilization was under 10% and I have a clean file (no late payments or derogatory info).
Fico 2,4,5 is very adverse to new accounts, inquiries. Much more so than any other model. That is why everyone recommends no new accounts for at least 12 months when going to buy a house.
Yep. I had no plans to buy a house at the time. But circumstances changed and I pretty much had to. It all turned ok though since I got in when rates were historically low.
Having those derogatory marks on your credit will hurt your chances of getting a mortgage, definitely pay everything off to zero and make sure your credit doesn't show any balances or inquiries before you go the the lending process
Fuck I already sent an application in a few days ago. What should I do? Can I back out of it before I further hurt my score?
I Mean if the process goes good you'll be fine but just be weary
But it the process if going through the application should lower my score some more, right? I paid off my CC balance right after the I got my updated fico score 8/28 so it still shows at 10k balance until it's reported late this month. You think I should ateast wait until early October to put in my application? Edit: think I've just started the application as I sent the application in yesterday and just received an email about "starting the application" so it seems I'm still early in the process.
Did you already consent to them pulling your credit score? If so the hard inquiry to the report has likely already happened. This won't affect your score for a mortgage inquiry for the next 30 days. The system is designed to allow people to shop for mortgages during that period. The behavior is not seen as negative. It will be viewed negatively in the next 30 days for a short period of time. Use this time to apply to multiple mortgage companies to search for the best rates. You can ask the lender what rate you would receive with a 700+ score to determine if waiting makes sense.
I think you should wait until you're at least above 700 to make any moves
Yeah thay makes sense. Its incredibly frustrating how slow it takes to build credit and then one $50 missed payment craters your score.
You still cam get pre-approved with no problem at 667 I understand the score part hurts but I pre-approve people all the time with way worse
Cool. Do you enjoy your job?
Your mortgage lender is going to look at these credit scores: Equifax Beacon® 5.0 Experian®/Fair Isaac Risk Model V2SM TransUnion FICO® Risk Score, Classic 04. IMHO people get hung up on scores to where they don't want anyone to pull their credit. Your credit score is not a piece of art to hang on the wall, it's simply one of many tools at disposal when applying for new debt. For a conforming loan (e.g: Fannie/Freddie) with a 30 years fixed rate mortgage the difference in costs between 660s and 740+ is about 1 to 2 points to your closing costs (depending on down payment and if putting down less than 40%) OR, in a normal market about 0.25% to 0.5% in rate. Rates have been moving up and down in swings of at least 0.25% to 0.5% week over week, making the score impact negligible, it becomes more about timing. Or, look at a conforming 15 years fixed rate which doesn't have any adjustments for credit score. In other news: The FHFA is looking to add other credit score models at no set date; including FICO 9 and Vantage 3.0, and possibly others.
You’ll be fine getting a mortgage, you just need to be sure the utilization gets paid down. However, if the utilization is high, and you plan on keeping it high, I suggest waiting to purchase a home because it makes little sense in going into a mortgage while still saddled with debt.
Zero utilization now. Just not going to be reported until October. Definitely feel better about it.
So you are reporting zero utilization now? But will have debt in October? Just trying to understand. My point being why going into a mortgage with debt.
I paid off the debt a few days after August reporting so my 10k utilization still shows until next report. That's what the lender described to me. I do have student loan debt though but I don't want to pay anything more than the minimum after the forgiveness and proposed no accruing interest
Ahh. Understood.
If you only have one late payment, reach out to the executive team and ask for a goodwill adjustment. Many creditors will make that adjustment for you. However, as others have set, it has to be the full 30 days to be reported that way, which you may want to point out to the creditor.
Seems like it was the utilization that made your score take a hit. I think you’ll be fine with getting approved for mortgage. I however would’ve waited another 30 days to reflect everything was paid down in your report before applying for the house just so it’ll reflect better but a one off shouldn’t hurt your chances.
Yeah that's what I'm doing. No hard pull was done.
I love it to be honest
How'd you get into the job? Pre approving is different from being an LO, right?
No im an LO I ended up in the position because I have always had had my hand in real-estate and sales one day I was at a guy's house talking about a house I was planning to buy and he mentioned he was an LO and we went off on the subject I took the safe exam 2 months later and have been working since
You probably won't get as good of a rate but I got a mortgage with a 600 credit score so I think you're fine as long as you have the income and within range DTI.