Posted on: 30th Dec, 2008 05:05 pm
I'm in the process of getting a mortgage and a new lease for a car. I went to a mortgage broker on Saturday who checked our credit scores. Nissan also checked my Fiancees credit score. On Monday I spoke with Citibank and one of her credit scores dropped from 714 to 696 in two days. Nothing happened except nissan running her credit twice. Citi is saying that nissan is the only difference in the credit reports from Saturday and the on she has. Her other scores are 717 & 756.
Would this lower her score this much? Because of this Citi is saying we have to pay 1/2 a point to get a 5% loan. My scores range from 740-825. We are applying for a loan of $285,000 with 20% down and we make ~$150,000. We have combined $90,000 in student loans and no other debt.
Does this make sense? The credit dropping and paying 1/2 a point to get the best rate?
Would this lower her score this much? Because of this Citi is saying we have to pay 1/2 a point to get a 5% loan. My scores range from 740-825. We are applying for a loan of $285,000 with 20% down and we make ~$150,000. We have combined $90,000 in student loans and no other debt.
Does this make sense? The credit dropping and paying 1/2 a point to get the best rate?
Hi mambwe,
I am quite surprised that the credit score has dropped by so many points within 2 days. In my opinion, you should contact the credit bureaus and check with them what exactly has happened and why the credit has dropped by so many points.
You have mentioned that her other scores are 717 and 756. In that case, the lenders should use the middle score (717 in your case) to give you the loan. You can speak to few more lenders and check if they are ready to give you a loan at 5% without paying points.
Thanks.
I am quite surprised that the credit score has dropped by so many points within 2 days. In my opinion, you should contact the credit bureaus and check with them what exactly has happened and why the credit has dropped by so many points.
You have mentioned that her other scores are 717 and 756. In that case, the lenders should use the middle score (717 in your case) to give you the loan. You can speak to few more lenders and check if they are ready to give you a loan at 5% without paying points.
Thanks.
i will also admit to being somewhat surprised as to the drop in score as quickly as that.
as to the 1/2 point, that's not so surprising. rates are volatile, and subject to change at the drop of a hat (or the drop of a dow jones average or the drop of a bomb in the middle east). nobody can truly predict what's going to take place in the mortgage market. yes, indeed, you can check around with other lenders (which will impact your scores again) or you can ask your lender to re-score (they may or may not have that option).
truly, 5 with 1/2 point isn't a bad deal, no matter how you slice it.
as to the 1/2 point, that's not so surprising. rates are volatile, and subject to change at the drop of a hat (or the drop of a dow jones average or the drop of a bomb in the middle east). nobody can truly predict what's going to take place in the mortgage market. yes, indeed, you can check around with other lenders (which will impact your scores again) or you can ask your lender to re-score (they may or may not have that option).
truly, 5 with 1/2 point isn't a bad deal, no matter how you slice it.
This is based on the first credit pull, so if you have been casually looking it may be a possible cause. If is was done recently and by only one place that does seem odd. Though one credit pull can affect your score from 0 to 50 points. Anything more than a couple points is abnormal as a general rule.
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