Do underwriters look at the cause at the change in credit score and take that into consideration before closing?

Asked by Pelletierae, Brea, CA Fri May 17, 2013

My husband and I are self employed and about to close on a short sale that has taken seven months. My husbands score changed from a 780 to a 740 due to a high balance on his credit card. This card is to buy all of his work materials and once the jobs are finished he pays it off, it happens consistently and all the purchases are work related. We received a new commitment letter saying we were approved but they now want to see all new paperwork, including statements and new tax returns. Closing in 7 days and we are freaking out!

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Pelletierae, Home Buyer, Brea, CA
Fri May 17, 2013
There is another part to this....

Since we are both self-employed, our yearly income fluctuates. The bank looked at 2010 and 2011. Now they want 2012. 2011 was a great year, but 2010 and 2012 were average but basically the same.

Will this affect us?
Otherwise, nothing at all has changed and we are in good financial standing all around.
Thank you for all of the support and help.
0 votes
Joel Lobb, Mortgage Broker Or Lender, Louisville, KY
Fri May 17, 2013
A 740+ score usually scores the best rates and terms available for conforming loans.

Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
http://mylouisvillekentuckymortgage.com
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Fri May 17, 2013
740 is the starting line on the top tier so it should have no impact whatever, good luck with your new home.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference:  http://jamessimms.com/
0 votes
allan erps,A…, Agent, Pearl River, NY
Fri May 17, 2013
Honestly, 780 to 740 should not make a difference, especially if your rate is locked in. Both still excellent scores.
0 votes
Thanks Allan. Rate wasn't locked, original rate was 3.5, now they are quoting us at 3.65, which is fine. We are just scared they will pull the loan with only 7 days to go!
Flag Fri May 17, 2013
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