Home Buying in 94556>Question Details

Friscoplayrsf, Home Buyer in Moraga, CA

I just recently was approved for the Mortgage certificate Credit, why would it lower my credit score? I dont get that part.

Asked by Friscoplayrsf, Moraga, CA Tue Dec 14, 2010

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Trulia VIP David Cooper’s answer
Also, lenders are now doing credit checks when the preapprove you and a second credit check a couple days before funding the loan. If your credit card balances increase or you bought a major purchase, you might not get your loan funded

DAVID COOPER Foreclosure and Bank REO's Investor-Las Vegas.35 years experience For freee list
Call +1-7024997037 or check website
0 votes Thank Flag Link Mon Jun 6, 2011
Matt is correct,
but there is a little more to this, if anyone else is reading this:
When we advise a Client at the start, we tell them not to make any large purchases, (such as a car), until the Escrow is closed. The reason for this is that every time a business runs your credit, it drops your scores a little bit.
The extreme case of this; the people went into a new ar dealership to buy a car, and the credit department at that dealership, applied at 12-15 different lenders; everyone from some Banks, to Credit Unions to Thrifts.
The people did not buy a car, they also did not buy a house for a long time, due to the drop in their scores.
0 votes Thank Flag Link Mon Jun 6, 2011
The reason for the lower credit score is because you have an inquiry from a lender for your mortgage, if you do not normally have your credit checked any inquiry will likely reduce your score by a few points. This normal and the credit score will increase again once your new mortgage payment starts reporting to the credit bureaus. Good Luck with your new home purchase.

Matt Puzz
Citizen's Choice Mortgage
Web Reference: http://www.mattpuzz.com
0 votes Thank Flag Link Tue Dec 14, 2010
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