We signed a contract on a new construction condo in Dec '09 and started working with a financier right away say around early Jan '10. The Finance broker processed our applications and we were told that my wife had a credit score just below 720 (actual was 718) and that her scores were going to penalize us from getting excellent credit rating and never get the lowest interest rates...in fact we... [more]
We signed a contract on a new construction condo in Dec '09 and started working with a financier right away say around early Jan '10. The Finance broker processed our applications and we were told that my wife had a credit score just below 720 (actual was 718) and that her scores were going to penalize us from getting excellent credit rating and never get the lowest interest rates...in fact we were getting penalized as much as 3/8 percentage pts. My score is above 550 so I'm good.
Flash forward to today where we are going to close on our condo in the next few weeks. I asked if we could rerun my wife's score again and see if it's gotten better since January therefore we both have excellent credit and they couldn't hit us with extra points because of risk. However, we just found out that her old score is good for 6 months which means it wouldn't expire until end of July...I need to close on my condo in the newt 3 weeks or so. What do I do? Challenge my broker as to why they can hold her score for six months? She was only 2 pts shy of 720 five months ago...this would save up quite a bit of money if I could get our rate below 5% which I'm sure is possible if our credit scores both show excellent. We are certain my wifes scores will be 2 pts better...it's just the financier will not re-run the numbers to find out. Is this a sleezy scam?
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Response by licarijo
over 15 years ago
Posts: 20
Member since: Jan 2009
I meant to say my score is above 750...so I'm good.
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Response by hofo
over 15 years ago
Posts: 453
Member since: Sep 2008
Does the broker get comp based on higher rates? Talk to another broker or bank since you do have a little time left.
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Response by glamma
over 15 years ago
Posts: 830
Member since: Jun 2009
i think you are being given bad information. i believe your mortgage person can just re-run your credit and use the better score. that's what i did (with chase) and i never heard anything about 6 months. talk to your mortgage person in a non-threatening way and make them want to help you. the human inclination is to help. try that before being combatative.
what would be the motivation for your mortgage person to give you bad information? to speed the closing and get paid? i would think they would want you to be as financially healthy as possible... actually they probably could care less. i'm guessing they just want to get paid faster?
it didn't long at all when i did this and di not delay or interrupt my process at all.
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Response by maly
over 15 years ago
Posts: 1377
Member since: Jan 2009
I am not saying that is the case in this instance, but a mortgage broker gets a bigger commission on higher rate loans. As long as their customer doesn't walk away to another broker/bank, there is a strong incentive to bullshit for an extra $1,000 on his commission check.
The OP needs to shop around, because the 6-month clause doesn't pass the smell test.
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Response by dg156
over 15 years ago
Posts: 269
Member since: May 2007
This doesn't sound right because it's my understanding that the lender runs a credit check again just prior to the closing to ensure that the borrower's score has not decreased, representing an increased risk for the bank. I think, as long as you pay the fee to have your credit score checked again, they should do it.
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I meant to say my score is above 750...so I'm good.
Does the broker get comp based on higher rates? Talk to another broker or bank since you do have a little time left.
i think you are being given bad information. i believe your mortgage person can just re-run your credit and use the better score. that's what i did (with chase) and i never heard anything about 6 months. talk to your mortgage person in a non-threatening way and make them want to help you. the human inclination is to help. try that before being combatative.
what would be the motivation for your mortgage person to give you bad information? to speed the closing and get paid? i would think they would want you to be as financially healthy as possible... actually they probably could care less. i'm guessing they just want to get paid faster?
it didn't long at all when i did this and di not delay or interrupt my process at all.
I am not saying that is the case in this instance, but a mortgage broker gets a bigger commission on higher rate loans. As long as their customer doesn't walk away to another broker/bank, there is a strong incentive to bullshit for an extra $1,000 on his commission check.
The OP needs to shop around, because the 6-month clause doesn't pass the smell test.
This doesn't sound right because it's my understanding that the lender runs a credit check again just prior to the closing to ensure that the borrower's score has not decreased, representing an increased risk for the bank. I think, as long as you pay the fee to have your credit score checked again, they should do it.