How important is a credit score for a mortgage? - GoFuckYourself.com

96ukssob · 12-01-2009, 11:37 AM

I did some credit re-organization (balance transfers) of my credit cards in the past year or so. Some cards went up to 24% interest, so I either paid it off or transferred it to a lower or 0% card.

After doing that, my credit score went down a little especially since the one card stopped reporting to the credit bureaus so now my utilization is a lot higher than it really is. Plus I got two new auto loans this year so my debt to income ratio went up (I had no choice, old car was in my ex's name & other car was paid in cash).

I tried to talk to a few brokers, but all they keep saying is "just apply and we'll see"... NO! i dont want to apply and see, i want to know before hand... greedy brokers

Anyway, im debating whether it is worth to pay off a huge chunk of my cards to get my score up and have less to put down, or keep my score where it is at and have more to put down

edit: its probably the difference of 15 points or so... great than 700 on all three

Sly · 12-01-2009, 11:44 AM

Credit scores will impact your rate. Your rate will impact your loan. Better score, better rate, better loan.

I've seen tables that show how a 100 point swing can save or cost you hundreds of thousands of dollars. I personally would hold off on buying a house until 1) most, if not all, debt is paid off 2) my credit score was higher, 700s at least and 3) a decent/sizable down payment on hand. There is no real reason to rush into buying a house... houses will be available tomorrow and the day after that and the day after that. Get your finances straightened out first and save yourself a boatload of cash.

Think about it... waiting just one year to straighten out your finances can literally save you hundreds of thousands of dollars.

Ramos · 12-01-2009, 11:51 AM

nice post Sly, great advice.

Quote:

Originally Posted by Sly

Credit scores will impact your rate. Your rate will impact your loan. Better score, better rate, better loan.

I've seen tables that show how a 100 point swing can save or cost you hundreds of thousands of dollars. I personally would hold off on buying a house until 1) most, if not all, debt is paid off 2) my credit score was higher, 700s at least and 3) a decent/sizable down payment on hand. There is no real reason to rush into buying a house... houses will be available tomorrow and the day after that and the day after that. Get your finances straightened out first and save yourself a boatload of cash.

Think about it... waiting just one year to straighten out your finances can literally save you hundreds of thousands of dollars.

Sly · 12-01-2009, 11:57 AM

Important thing to remember:

As far as investments go, a house is one of the worst "investments" one can have. They are money pits and the rate of profit is just abysmal compared to other actual investments. Buy a home because you want to buy a home, not because you are "tired of paying rent." In many markets, purchasing will cost you a few hundred dollars more a month than renting... save/invest that money instead.

Topbuxom Lea · 12-01-2009, 12:00 PM

Sly's right.

My credit score is btwn 790-820. Worked hard to get that but it paid off. Got a refi from BofA at 4.7 %

Get yer shit together, then make it happen

Iron Fist · 12-01-2009, 12:01 PM

Quote:

Originally Posted by Sly

Credit scores will impact your rate. Your rate will impact your loan. Better score, better rate, better loan.

I've seen tables that show how a 100 point swing can save or cost you hundreds of thousands of dollars. I personally would hold off on buying a house until 1) most, if not all, debt is paid off 2) my credit score was higher, 700s at least and 3) a decent/sizable down payment on hand. There is no real reason to rush into buying a house... houses will be available tomorrow and the day after that and the day after that. Get your finances straightened out first and save yourself a boatload of cash.

Think about it... waiting just one year to straighten out your finances can literally save you hundreds of thousands of dollars.

Nice post....

james_clickmemedia · 12-01-2009, 12:04 PM

To get the best interest rates you need a score above 750...
You can still get a good rate with a score about 700..

This is how it was 10 months ago when I last re-morgaged and locked in 25 years at 5% with no escrow..

Also this was with more than 20% in equity. There was no way to get those rates without either 20% down or equity.

james_clickmemedia · 12-01-2009, 12:06 PM

Quote:

Originally Posted by Topbuxom Lea

Sly's right.

My credit score is btwn 790-820. Worked hard to get that but it paid off. Got a refi from BofA at 4.7 %

Get yer shit together, then make it happen

wow, thats a crazy high score, well done.

After Shock Media · 12-01-2009, 12:07 PM

Only 1 of the 3 credit bureaus really count often as your real score, 2 of them do not report your correct score via their reports. Pretty sure it is Equifax that you want to pay attention to (my mind is off today, but positive that is the one - if not then Experian which I just do not feel is correct).

You would want to free up as much of a balance as possible before a mortgage anyways. So paying down the cards first makes a great deal of sense. Plus it will also boost your overall score. As Sly said this can save you tens of thousands or even more over the life of your mortgage.

Also go over your credit file with a fine tooth comb while you do this. Make sure there are no inaccuracies on there at all right now as fixing them can take a little time but is easy and worth to do.

Most credit agencies also ave a simulator in their system. Where you can run what if scenarios. Run those to see which actions will help the most with your report. They can really help establish a game plan and where to start first.

Watch out for those other cards that have no balance. Them fuckers have been cancelling people who have not been using them. I have gotten a few cancelled myself this past 3 months. They always were paid on time and no balance. They flat out killed my account and thus fucked my score even more since there was less credit ratio available to play with. I would charge a small amount on such cards and carry a tiny ass balance to make sure they stay open.

Then of course do join a good monitoring service while you plan this whole process so you can keep your finger on the pulse. Make sure they update often.

Lastly get all your pay stubs, check stubs, tax reports, you name it all together and organized and ready to show. Get copies if needed, especially if your missing certain stubs etc.

TheLegacy · 12-01-2009, 12:08 PM

Bottom line is yes.
Watch out for sleazy mortgage brokers giving you advice too

Best advice is to make sure your debts are low, save up for a good down payment and pay attention to Sly's advice

Alky · 12-01-2009, 12:09 PM

depends on the type of loan you are getting.... you can get a FHA loan with a middle score above 650 at a really good rate.

VikingMan · 12-01-2009, 12:15 PM

I am not even going to read this thread. Just wanted to let you know that you need a 720 or higher to get the best deal.

boneprone · 12-01-2009, 12:22 PM

very important.

96ukssob · 12-01-2009, 12:35 PM

Quote:

Originally Posted by Sly

Important thing to remember:

As far as investments go, a house is one of the worst "investments" one can have. They are money pits and the rate of profit is just abysmal compared to other actual investments. Buy a home because you want to buy a home, not because you are "tired of paying rent." In many markets, purchasing will cost you a few hundred dollars more a month than renting... save/invest that money instead.

I have no problem at all with renting, but where I'm at, its pretty difficult to find a decent place to rent. my apt now is nice, but id like to have more room and closer to the city area.

the only reason why I was thinking of buying is so I can have a physical house, instead of living in an apt where i can hear my neighbors at 7am going to work. ive been trying to look for a house to rent in the area, but nearly impossible

Quote:

Originally Posted by After Shock Media

Only 1 of the 3 credit bureaus really count often as your real score, 2 of them do not report your correct score via their reports. Pretty sure it is Equifax that you want to pay attention to (my mind is off today, but positive that is the one - if not then Experian which I just do not feel is correct).

You would want to free up as much of a balance as possible before a mortgage anyways. So paying down the cards first makes a great deal of sense. Plus it will also boost your overall score. As Sly said this can save you tens of thousands or even more over the life of your mortgage.

Also go over your credit file with a fine tooth comb while you do this. Make sure there are no inaccuracies on there at all right now as fixing them can take a little time but is easy and worth to do.

Most credit agencies also ave a simulator in their system. Where you can run what if scenarios. Run those to see which actions will help the most with your report. They can really help establish a game plan and where to start first.

Watch out for those other cards that have no balance. Them fuckers have been cancelling people who have not been using them. I have gotten a few cancelled myself this past 3 months. They always were paid on time and no balance. They flat out killed my account and thus fucked my score even more since there was less credit ratio available to play with. I would charge a small amount on such cards and carry a tiny ass balance to make sure they stay open.

Then of course do join a good monitoring service while you plan this whole process so you can keep your finger on the pulse. Make sure they update often.

Lastly get all your pay stubs, check stubs, tax reports, you name it all together and organized and ready to show. Get copies if needed, especially if your missing certain stubs etc.

BofA fucked me hard almost a year ago. I had some 18 months no interest with them and going into month 10 they cut my available credit limit in half, where now I am using 90% of the available credit... on top of that, they took away the 0% and gave me an interest rate of 15.99%, but they were so kind not to charge me back interest. I sent them letters saying this is bullshit and they cant do this.

they followed up with a letter saying they are closing my account and I can not use the card anymore. best part was three days later i get a "preapproved" application for a new card.

12-01-2009, 11:37 AM	#1
96ukssob So Fucking Banananananas Industry Role: Join Date: Mar 2003 Location: If I was in your ass you'd know it Posts: 12,991	How important is a credit score for a mortgage? I did some credit re-organization (balance transfers) of my credit cards in the past year or so. Some cards went up to 24% interest, so I either paid it off or transferred it to a lower or 0% card. After doing that, my credit score went down a little especially since the one card stopped reporting to the credit bureaus so now my utilization is a lot higher than it really is. Plus I got two new auto loans this year so my debt to income ratio went up (I had no choice, old car was in my ex's name & other car was paid in cash). I tried to talk to a few brokers, but all they keep saying is "just apply and we'll see"... NO! i dont want to apply and see, i want to know before hand... greedy brokers Anyway, im debating whether it is worth to pay off a huge chunk of my cards to get my score up and have less to put down, or keep my score where it is at and have more to put down edit: its probably the difference of 15 points or so... great than 700 on all three __________________ Email: Clicky on Me Last edited by 96ukssob; 12-01-2009 at 11:40 AM..

12-01-2009, 11:44 AM	#2
Sly Let's do some business! Industry Role: Join Date: Sep 2004 Location: Austin, TX Posts: 31,327	Credit scores will impact your rate. Your rate will impact your loan. Better score, better rate, better loan. I've seen tables that show how a 100 point swing can save or cost you hundreds of thousands of dollars. I personally would hold off on buying a house until 1) most, if not all, debt is paid off 2) my credit score was higher, 700s at least and 3) a decent/sizable down payment on hand. There is no real reason to rush into buying a house... houses will be available tomorrow and the day after that and the day after that. Get your finances straightened out first and save yourself a boatload of cash. Think about it... waiting just one year to straighten out your finances can literally save you hundreds of thousands of dollars. __________________ Vacares - Web Hosting, Domains, O365, Security & More - Paxum and BTC Accepted Windows VPS now available Great for TSS, Nifty Stats, remote work, virtual assistants, etc. Click here for more details.

12-01-2009, 11:57 AM	#4
Sly Let's do some business! Industry Role: Join Date: Sep 2004 Location: Austin, TX Posts: 31,327	Important thing to remember: As far as investments go, a house is one of the worst "investments" one can have. They are money pits and the rate of profit is just abysmal compared to other actual investments. Buy a home because you want to buy a home, not because you are "tired of paying rent." In many markets, purchasing will cost you a few hundred dollars more a month than renting... save/invest that money instead. __________________ Vacares - Web Hosting, Domains, O365, Security & More - Paxum and BTC Accepted Windows VPS now available Great for TSS, Nifty Stats, remote work, virtual assistants, etc. Click here for more details.

12-01-2009, 12:00 PM	#5
Topbuxom Lea Confirmed User Join Date: Feb 2004 Posts: 1,313	Sly's right. My credit score is btwn 790-820. Worked hard to get that but it paid off. Got a refi from BofA at 4.7 % Get yer shit together, then make it happen __________________ Lea Marketing Miglet ICQ: 263003699 Topbucks/Pluginfeeds Twitter: @porntechgeek @TopBucksmobile @pinkvisual Facebook: http://www.facebook.com/imalespectrum

12-01-2009, 12:04 PM	#7
james_clickmemedia Confirmed User Join Date: Apr 2003 Location: Texas / London Posts: 2,204	To get the best interest rates you need a score above 750... You can still get a good rate with a score about 700.. This is how it was 10 months ago when I last re-morgaged and locked in 25 years at 5% with no escrow.. Also this was with more than 20% in equity. There was no way to get those rates without either 20% down or equity. __________________ $ CLICKMEMEDIA.COM $ CONVERTING ETHNIC TRAFFIC SINCE 1998 ~ $30+PPS BLACK-X.COM - NEW BLACK EX-GF SITE CLICKMEMEDIA.COM ~ ICQ - 8788771 Last edited by james_clickmemedia; 12-01-2009 at 12:05 PM..

12-01-2009, 12:07 PM	#9
After Shock Media It's coming look busy Join Date: Mar 2001 Location: "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn". Posts: 35,299	Only 1 of the 3 credit bureaus really count often as your real score, 2 of them do not report your correct score via their reports. Pretty sure it is Equifax that you want to pay attention to (my mind is off today, but positive that is the one - if not then Experian which I just do not feel is correct). You would want to free up as much of a balance as possible before a mortgage anyways. So paying down the cards first makes a great deal of sense. Plus it will also boost your overall score. As Sly said this can save you tens of thousands or even more over the life of your mortgage. Also go over your credit file with a fine tooth comb while you do this. Make sure there are no inaccuracies on there at all right now as fixing them can take a little time but is easy and worth to do. Most credit agencies also ave a simulator in their system. Where you can run what if scenarios. Run those to see which actions will help the most with your report. They can really help establish a game plan and where to start first. Watch out for those other cards that have no balance. Them fuckers have been cancelling people who have not been using them. I have gotten a few cancelled myself this past 3 months. They always were paid on time and no balance. They flat out killed my account and thus fucked my score even more since there was less credit ratio available to play with. I would charge a small amount on such cards and carry a tiny ass balance to make sure they stay open. Then of course do join a good monitoring service while you plan this whole process so you can keep your finger on the pulse. Make sure they update often. Lastly get all your pay stubs, check stubs, tax reports, you name it all together and organized and ready to show. Get copies if needed, especially if your missing certain stubs etc. __________________ [email protected] ICQ:135982156 AIM: Aftershockmed1a MSN: [email protected]

12-01-2009, 12:08 PM	#10
TheLegacy SEO Connoisseur Industry Role: Join Date: Apr 2003 Location: Brantford, Ontario Posts: 16,994	Bottom line is yes. Watch out for sleazy mortgage brokers giving you advice too Best advice is to make sure your debts are low, save up for a good down payment and pay attention to Sly's advice __________________ SEO Connoisseur Microsoft Teams: Robert Warren SEO Telegram: @TheLegacy54 RobertWarrenSEO.com

12-01-2009, 12:09 PM	#11
Alky Confirmed User Join Date: Apr 2002 Location: Houston Posts: 5,651	depends on the type of loan you are getting.... you can get a FHA loan with a middle score above 650 at a really good rate.

12-01-2009, 12:15 PM	#12
VikingMan Exploiting human weakness Industry Role: Join Date: Jan 2008 Location: next to a salmon stream Posts: 6,529	I am not even going to read this thread. Just wanted to let you know that you need a 720 or higher to get the best deal.

12-01-2009, 12:22 PM	#13
boneprone Hall Of Fame Industry Role: Join Date: Jan 2001 Location: Portland Oregon USA Posts: 34,415	very important. __________________ Industry Hall Of Fame Legend Mike Jones Bow to the Power - Still BP4L http://gfyawards.com/hall-of-fame Learn about it kids.