Pam, Home Buyer in Dallas, TX

Since starting to look for a mortgage, my credit score has dropped over 20 points. What can I do?

Asked by Pam, Dallas, TX Fri Jul 24, 2009

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14
Marti Kay &…, Agent, Denton, TX
Fri Jan 8, 2010
Pam,
Good luck in this process for you. As many have stated below, be sure to almost freeze your spending as you go through this process. No new large purchases until AFTER you close on the house. (this includes furniture for the new home!) You can pay down some credit cards as that will only help your credit score. Pay everything on time for at least the next couple of months so that stays current. You are right there at the level that you could get a better loan with just a few more points. But definitely don't keep "shopping" the rates as that will only bring it down. Find a reputable and honest lender and stick with them. You'd really be shopping for pennies right now because the rates are really great right now. And I would definitely tell the ones you've already shopped with to quit pulling your credit so that your credit score doesn't go down further. A good lender will tell you like Tom said below without pulling the credit report again. Take a look at the credit report that you already had pulled and definitely make sure no duplicates are on there and send dispute letters if there are. They can pull those off and it will help your credit score. Happy shopping and if we can do anything to help, give us a call - 940-243-1919.

Thanks, Lana Gay
0 votes
Ronda Allen, Agent, Plano, TX
Wed Dec 16, 2009
Pam, in case you are still comparing lenders and enhancing your credit score, I suggest you make the decision to work with Tom Burris - who commented below - for your loan, and pick any of us who responded as your real estate agent. Your agent can focus on finding the right house, and Tom can focus on processing the loan. His reputation precedes him, and he answers questions on trulia.com regularly and with helpful detail. For most any purchase of a home in Texas, the real estate agent's commission is paid by the seller of a resale home or the builder on a new home. So, there should be no out-of-pocket expense to you for having a Realtor's assistance with finding the right house.

There are new rules about lenders and Good Faith Estimates going into effect on January 1, 2010. There is also a new form, which is helpful and confusing at the same time. Good lenders are going to become an even more important piece of the puzzle in 2010. Having a good lender and good real estate agent working together to answer all of your questions should be on every buyer's agenda as we head into the new year.
Thanks,
Ronda
0 votes
., , Lewisville, TX
Wed Nov 11, 2009
Pam.

Going about this process along can be daunting. I have answered below on mortgages, but as a licensed Dallas area Realtor I would love to help guide you along the process and my fee is of no cost to you.

Nicole Arenas, Realtor
214-991--9507
0 votes
Dan & Becky…, Agent, Flower Mound, TX
Wed Sep 9, 2009
Pam,

Every time they pull your credit, you lose a couple of points. You should shop for a mortgage lender asking for a Good Faith Estimate (GFE), don't give them your social security number. Once you've had a chance to compare costs and interest rates, have a select number of lenders complete the credit check. This will minimize the drop in your credit score.
0 votes
Bill Eckler, Agent, Venice, FL
Fri Jul 24, 2009
Pam,

This is a problem associated sometimes with seeking input from multiple resources. At the point, we recommend that you contact these parties and request that they make no additional requests unless personally authorized by you.

Good luck
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Fri Jul 24, 2009
Depending on the credit profile, credit inquiries can drop the score that much.
Best you can do is dispute the duplicate credit pulls.
Maybe paying down the cards some more to offset the drop.
As advised below... you don't need to go on an application spree to find the best rates/fees. Most loan officers can provide that based on your verbal score.
I wish you luck!!
0 votes
Pam, Home Buyer, Dallas, TX
Fri Jul 24, 2009
I have actually been paying my credit cards down and have not charge anything on them for at least 6 months. Went I get my score report, it list "shopping for a home loan" as a reason for my credit drop. There are other reasons for my credit score, but this is the only new reason that was never listed before.
0 votes
., , Lewisville, TX
Fri Jul 24, 2009
I can't emphasize enough check with one mortgage company or bank to see what your score is, having it pulled mutliple times can bring your score down enough to make someone no longer have a qualifying score to qualify for a home and delay your home buying by up to 6 months or more. As a Realtor, I do not receive any commissions, fee's nor kickback's when referring you to a trusted lender my clients use and I work with, but I can help you avoid the current predicament. We are here to guide you all the way through the process, making it a smooth process. Our fee's area covered by the builder and homesellers, so why not put our expertise to work for you?!
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Fri Jul 24, 2009
Pam,
They are supposed to count as one. Something else must have changed.
Did you put anything on the credit cards? Balance increases there can drop a score fast.
0 votes
T.E. & Naima…, Agent, Dallas, TX
Fri Jul 24, 2009
The good news is that you are still in a very good score bracket and shouldn't be turned down for a loan based on credit score. The damage was probably done the first time they pulled it. You may want to contact those people and ask them not to make any additional inquiries unless you decide to use one of them.

Your Realtor should be helping you on this as well.

Reid gave you great advice about what not to do from now on. Good luck,

Naima
214-289-8555
Naima@Sumner-Realty.com
Web Reference:  http://www.SumnerRealty.com
0 votes
Pam, Home Buyer, Dallas, TX
Fri Jul 24, 2009
My credit score is currently at 699. It was going to be a conventional loan. I get a report everytime my credit score changes and it showed that I had 4 request on my credit, 3 of which were done by the same mortgage company. I thought it was supposed to be counted as just one pull within a certain amount of days.
0 votes
Dallas Texas, Agent, Dallas, TN
Fri Jul 24, 2009
Nothing you can do they will increase within 12 months. We instruct any all consumers NEVER provide your SSN to anyone till you have all the facts, once you disclose your SSN your credit is immediately pulled each credit pull will lower your scores by approx. 5 - 10 points each.

A person can tank their credit will quick with to many inquiries.

I am a realtor and loan officer why I never pull anyone's credit till I am determine they are good to go or instruct buyer once credit pulled it lowers your scores, are you ready purchase within next 60 days.

CONTACT OUR OFFICE TODAY
972-699-9111
Lynn A. Crosby ~ National Featured Realtor
Follow me on Twitter: http://twitter.com/Lynn911
"...Specializing in Residential, Commercial Properties and Loans..."
Dallas Realtor, and Credit Repair Consultant -
The Michael Group - "Dallas Business Journal 07’ & 08' list top realtors"
Dallas Loan Officer -
Dallas Real Estate Website: http://www.lynn911.com 60,000 listings Dallas homes for sale
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Fri Jul 24, 2009
Did it drop below 620?
Are you trying for Conventional or FHA?
0 votes
Reid Kaplan, Agent, Los Angeles, CA
Fri Jul 24, 2009
That can happen if your credit receives multiple inquiries. You should stop shopping around for mortgages for now, or if you do, make sure the lender can give you a quote based on an existing credit report. Also do not apply for any credit cards, take out any loans or leases, and make sure all payments are on time - you do not want to suffer further credit damage. Your score should recover pretty quickly, so this is unlikely to delay your purchase more than a few months.
0 votes
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