Posted by Jackie on April 02, 2006 at 23:06:48:
If you have maxed out credit cards, call the companies to see if they will raise your limit. If it doesn’t look like you’ve used all your credit, your scores will go up. Try to keep the amount used under 50% of line of credit. If you get it raised, don’t max out again if you want to get a mortgage.
Credit scores and mortgage - Posted by jason
Posted by jason on March 29, 2006 at 20:28:35:
Hi all,
I just checked my credit scores. Transunion and equifax show FICO of 628 and experian show 541. I know these are extremely low mainly due to maxed out cards used to pay for graduate school. Which scores would a lender use if I apply for a mortgage , which I plan to do in a few months. Also, which scores would a HML probably use for a 65-70% LTV 6 month interest only loan.
Re: Credit scores and mortgage - Posted by Jay Neal
Posted by Jay Neal on March 30, 2006 at 07:11:05:
Jason: I am a HML in NC. The first time we deal with a new client we do want to see a recent credit report but it is not a critical piece for us. It is all about the deal. Our best client has very poor credit but he is an excellent wholesaler with a huge buyers list so exit strategy is not a problem for him.
For the new client, we want to know his exit strategy and if it is logical. A person intending to refi and hold the property with credit scores near 500 is not logical; we may be able to advise him how to make money another way.
Of course all HMLs have their own ways so interview several in your area.
Re: Credit scores and mortgage - Posted by al
Posted by al on March 29, 2006 at 21:44:57:
there will be 3 scores actually. The middles score will be used. That is not highest and not the lowest but the score inbetween. I get they will have to use 628.
Re: Credit scores and mortgage - Posted by jason
Posted by jason on March 29, 2006 at 22:18:13:
Thanks AL