Four Points

That’s how far Chief’s credit score is from us getting a home loan.

Seriously, four points. I can’t decide if that makes it more or less frustrating than if it had been, like 30 points. Four points.

We haven’t given up. There are obviously a few options:

1. Search for a new lender, though from what we understand they all fall in generally the same place score wise, and I am reticent to put in a bunch of apps which would of course LOWER his score.

2. Wait a few months, though we’re not sure how many. Three? Would a score go up four points in three months of positive payment history and low usage?

3. Maybe try an FHA loan? I don’t know a lot about them but I hate to lose the benefits that come with a VA loan (no PMI, very limited closing fees, 0% down).

I know that banks have to have a cut off, but it makes me a bit sick to my stomach to be this close. His debt-to-income ratio is so good, and he doesn’t have any delinquencies or anything. His score is just still recovering from being so dismally low.

I am open to suggestions, as always.

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18 thoughts on “Four Points

  1. 4 points that really stinks! I dont know how things work where you are but here in Australia mortgage brokers or financial advisors can sometimes circumvent those problems by talking directly with their inside bank contacts. Good luck :/

  2. If you’re gonna go local you should look into a credit union. I’m not sure about for mortgages but for all other types of loans they generally have lower interest rates than banks because, unlike banks, they are not-for-profit institutions. You just have to fit their field of membership (which, if it’s in your town you probably do because of geography).

  3. Sorry I got distracted and forgot to finish my thought; I am not sure if their qualifying criteria will be any different than USAA but in general they are more customer focused (not a knock on USAA, we are military and use them as well) and will try and work with you. You may be able to ask an FSR (financial services rep) what their cut off is before applying so that you don’t waste your time applying (and dinging your credit) if it’s just going to be a no. If it is a no you could ask the FSR if something like a credit builder loan, a small loan that you take out and they put the funds on hold until you’ve made all the payments, then they release it to you. You’re not really gaining money or losing it (except for interest), you break even, but it shows them you make your payments and also increases your credit score.

  4. 4 points is nothing! I got my husband’s score up 50 points in under 2 months…. pm me on Facebook and I can give you some tips!! šŸ™‚ don’t do fha if you can do VA…. it’s SUCH a benefit

  5. If you can get Chief’s score up then do it…otherwise FHA is a great option. 57% of the FHA loans last year went to households with a credit score less than 680.

  6. We had a similar issue when buying our house, although for us it was the difference between an average interest rate and a super-low one. They took the middle of three scores and he was one point short! If they had averaged them instead, he would have been well over the line, so now we have to pay more every month because of that one stupid point. So frustrating! I don’t know enough about VA loans to have advice there, but not having to pay PMI would be great.

  7. I would wait it out and find out how you can raise his credit score. He should be able to go up by at least 4 points in a month or 2.

  8. That really sucks!!! I don’t have a ton of advice on this really, other than to say give it a month or two. Credit scores can change in a heartbeat. If you pay down a bit more on credit cards or things like that, it should help fairly quickly. Just remember that it takes a bit of time for that info to cycle through and show up on a credit report. I know how much you want to move, but if you wait just a bit longer you should be in a bit better place to try again. Hope that helps!

  9. Oh that sucks so much. Unfortunately I don’t have a lot of advice. We had to wait seven years for something on my hubby’s credit check to clear which sucked so much, but because we did wait we are getting a much better place than we would have if we were buying 4 years ago šŸ™‚

  10. You need to contact a credit repair service. Try L.exington Law. They typically can improve one’s credit score by 30%. I think the fee is $90 per month, but it’s so worth it and can save you thousands.

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