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alexsmith

In the process of getting approved for NFCU Homebuyers loan...

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Hello Forum,

 

I'm in the current process of getting approved for a loan from NFCU, I'm currently looking at 6% APR on the mortgage according to my loan officer for a $320,000 loan and was wondering what you folks thought on that. I just paid off 3 credit cards completely this week due to a loan from my brother but from what I understand this will not show until the following month since credit card companies only report to the credit bureau's once a month. I was considering canceling the loan and waiting until next month to reapply in hopes that my score will jump up 20 points with the paid off cards.

 

My current stats are:

 

EQ: 637

EX: 650

TR: 660

 

Income is around 160K for both of us combined with debt totaling around $600 monthly (student loans). My wife has a credit range around 700 but I believe they only use the credit of the applicant with the lowest score. Should I accept the 6% or should I wait and re-apply? Are there other banks that offer good loan programs as well?

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The reporting time depends on the credit company. Chase will update as soon as you PIF, and Discover and AMEX will update if you ask them to. Some other banks will update mid-cycle if you've paid in full and email them. If you wait for the update to happen, all three of them should have updated within a week of the new balance being reported.

 

How much your scores will change depends on how many cards you had, their balances, etc.

 

I don't know if 670 (I assume your EX-98 is 650) a cutoff for NFCU, so I don't know if they'll offer you a lower rate.

 

Generally yes, lenders use EQ-04, EX-98, and TU-04 and take the middle score of the lowest scoring applicant.

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illusemycreditcard,

 

I have a first premier which had a balance of $650 out of $700, a capitol one with $700 out of $900 and I had a discover card with $400 out of $600. Those are now balanced to zero but I still have a Navy Federal card with $6000 out of $25k. I didn't know that you could e-mail the card issuer to have them update with the credit agencies, I will try that.

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Capital One will require you to contact the EO, and it can take a week.. Discover will do it if you call or email. I don't think First Premier will do it at all. One thing you can try with both First Premier and Capital One - I know it works with the latter - is to update your address with something similar without actually changing where the mail will go.

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Definitely wait for the cards to update. That's going to be a position change in FICO score.

 

Your overall UTL is going to drop below 30%. Congrats on the house.

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I assume this is zero down? If you have 3.5% for a down payment you can get a much better rate with fha Bump in score wont matter much for fha so you could wait or just proceed as is -

Conventional would be available with a minimum of 5%

Conventional is credit based for rates so you be better off waiting until your scores update if you go this route

 

Both have PMI (mortgage insurance) but that rate combined with interest rate should still be at least 1% or more better than the 6% you are being offered

 

 

 

 

Good Luck

BranBTheLoanPROfessor

Mortgage Forum Lead

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Thanks for the advise, I leaning towards waiting until next month. I don't have 3.5 of the loan on me at the moment for FHA unless there's a program for down payment assistance., at most I have 1.5 percent saved of the loan for closing cost and other misc cost saved up. The homebuyers program is zero down initially for the loan. If I reapply and shop for other lenders, wouldn't this cause a hit on my score since they need to do a hard pull?

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Getting all of your cards but one paid off and having that last one under 30% will easily outweigh an inquiry.

+1

 

Yeah were talking 0 to 5 pts for an HP. UTL is much more important.

Edited by FixnCred

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Just wanted to add I just did Navy HomeBuyers Choice pre-approval. Current Mortgage scores are 660,668,652 offered rate was 30 year 5.5% per my loan officer 680 score will get under 5% interest.

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Thanks that is good information to have I shouldn't have an issue that getting at least 5.5%, also is it true that you can refinance the first year with minimal cost? I heard this from a CSR on the phone but I wanted to get more of a confirmation..

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I

 

Thanks that is good information to have I shouldn't have an issue that getting at least 5.5%, also is it true that you can refinance the first year with minimal cost? I heard this from a CSR on the phone but I wanted to get more of a confirmatio

Im a bit fuzzy on this. I have gotten different answers about the cost. I don't think you will see a substantial savings maybe a cpl hundred here or there at least thats the general impression I got having to read between answers. I will ask again see if I cant pin someone down with an answer.

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You will save on title costs but thats about it -

Actually from personal experience Navy will do a refinance and you save more than just title. They own this product and just did a modification agreement which was one page and lowered the rate and corresponding payment but left all other terms in place.

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