Credit Score Changes During Underwriting Process

Credit Score Changes During Underwriting Process

Gustan Cho Associates are mortgage brokers licensed in 48 states

What happens if your credit score changes during the underwriting process of a mortgage application? Will the lender cancel your approval, potentially resulting in a higher interest rate? Or does it ultimately not matter? Lenders routinely evaluate your credit score when you apply for a home loan, often checking it at least once more before closing.

Generally, a credit score change during underwriting will only negatively impact you if it’s due to new derogatory information. Sometimes, enhancing your credit score during this phase can result in better pricing. The following paragraphs will delve into credit score changes during the underwriting process.

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Steps in Monitoring Your Credit During The Mortgage Process

Here’s how to protect your credit during the mortgage process:

  • Avoid applying for new credit—no furniture for the new home, no new car, no increase in credit limits.
  • Do not increase your credit balances.
  • Credit utilization makes up 30% of your credit score.
  • Pay every account on time. Set up automatic payments if this is an issue for you.
  • Payment history comprises 35% of your credit score; one missed payment can take off 60–120 points!
  • If you have old collection accounts, do not contact the creditor, dispute the balance, or have any activity because old accounts get less weight in scoring models.
  • Any activity on the account can make it new again.

When Do Lenders Pull Credit Scores During Mortgage Process

During the underwriting process for a home loan, mortgage lenders assess your credit report. Typically, they obtain scores from the three primary credit bureaus: Experian, Equifax, and TransUnion. When all three scores are pulled, the middle score serves as the reference point for underwriters.

Alternatively, if a lender retrieves two scores, the lower of the two is utilized. This selected score is referred to as the “representative credit score.” In cases of multiple applicants, the borrower with the lowest credit score determines the representative score, which influences the interest rate and loan eligibility.

How Long Is The Initial Credit Score Used To Qualify Good For?

The credit score changes during underwriting process can significantly impact your mortgage approval and terms. Initially, your credit report is valid for 120 days, determining your loan eligibility and interest rate. If your mortgage loan doesn’t close within this timeframe, the lender will obtain a new credit report, and the resulting score becomes the “official” one for your file.

Mortgage underwriters will look at several factors, such as credit inquiries. Inquiries could mean you’re shopping for credit and taking on more debt than you disclosed on your application.

Before closing, most lenders conduct a thorough quality audit, rechecking your credit report. Any new accounts or derogatory items that could affect the affordability of your mortgage pose a risk. These issues may necessitate a return of your application to underwriting, causing delays in the closing process. At worst, such surprises could jeopardize and even lead to the rejection of your home loan approval. Click Here to get a mortgage loan with any credit scores

What Happens if Credit Scores Increase In The Mortgage Process

When initiating a mortgage application, the initial action taken by a lender involves obtaining your credit report. This credit check assesses whether you satisfy the minimum credit criteria required for financing. Furthermore, your credit score is pivotal in establishing the applicable interest rate.

Applicants with excellent credit get better mortgage offers than borrowers with lower scores. It’s fairly common for borrowers to apply for mortgages without locking in their interest rate.

Some applicants may seek preapproval without a designated property or while their home is still under construction, with the loan closing scheduled for the coming months. Others may be in the process of refinancing and prefer to secure a rate only once there is a favorable drop in interest rates. Credit score changes during underwriting process are a significant consideration throughout these scenarios.

Can You Use Higher Scores If Credit Scores Increase In Mortgage Process?

If there credit score changes during underwriting process, this leads to an increased credit score. Certain mortgage lenders may allow you to adjust your rate based on the updated credit score changes during the underwriting process. Lower rates are achievable with a higher credit score. Conversely, there is no need to be concerned about a rate reprice if your credit scores decrease.

Improvement of Credit Score Changes During Underwriting Process

Your mortgage rate remains unsettled until you are officially locked in. If you notice an improvement in your credit score while going through the loan process and still need to finalize the lock-in, it is common to achieve a higher score when you lock in your rate. Once you’re already locked in, any subsequent increase in your credit score won’t yield a benefit in terms of a better interest rate. Even a minimal one-point change in your credit score can impact your interest rate.

The majority of loan pricing operates on tier systems. For instance, upgrading your FICO score from 679 to 680 moves you into a more favorable tier, resulting in a lower interest rate. Conversely, if you are already at 680, you need to increase your score by 20 points to reach the next higher tier at 700. Remember, credit score changes during underwriting process are crucial in determining the tier and, consequently, the interest rate you qualify for.

Speak With Our Loan Officer for Credit Score

What Happens if Credit Score Drops During the Mortgage Process?

Should your credit score rise while going through the loan process, it can be beneficial without any adverse effects. Conversely, things can become more intricate if your credit score decreases during the underwriting process. Thankfully, a reduced score at the closing stage doesn’t necessarily lead to an automatic increase in your mortgage rate or a denial of your loan application. Lenders understand that credit scores fluctuate, and a minor drop typically won’t prompt them to reevaluate your mortgage terms or revoke your loan approval.

Recent Late Payment Drops Credit Scores During Mortgage Process

A significant drop in your credit score resulting from an adverse event like a missed payment or a substantial increase in your debt load could jeopardize your loan’s approval. This necessitates a return of your file to the underwriting process. If you continue to align with the lender’s credit score guidelines, you can likely proceed with closing your loan.

However, your loan may be at risk if you no longer meet the specified credit score requirements. In such a scenario, you can salvage it by exploring alternative loan programs or delaying the loan until you address and improve your credit. This ensures the necessary credit score changes during the underwriting process.

Fannie Mae sends your application back into underwriting if additional debt turns up, and it would increase the total expense ratio beyond program limits.

Credit Score Changes During Underwriting Process: If new derogatory information is identified or there is a significant alteration in the credit score, it can pose challenges during the underwriting process. It’s important to note that failing to complete the loan closing within 120 days of obtaining the initial credit report may result in the lower credit score being officially considered. This could become problematic if the revised score falls below the minimum requirement for the intended loan program and may also influence the mortgage rate. Get Help For Credit Score Change During The Mortgage Process

What If Credit Scores Dropped During Underwriting Process

A borrower’s credit scores and income heavily influence the approval of a mortgage loan. These two factors serve as critical determinants in assessing the eligibility of a potential mortgage borrower. For individuals with FICO scores below 580, a 10% down payment is mandatory for their home purchase.

Following Fannie Mae guidelines, a minimum credit score of 620 FICO is a prerequisite for qualifying for conventional loans. These standards underscore the significance of maintaining a favorable credit history and stable income when seeking mortgage approval.

All mortgage loan programs have minimum credit score requirements. FHA Guidelines on credit scores. To qualify for a 3.5% down payment, the FHA mortgage home loan is 580 FICO.

Prospective homebuyers need to be aware of these credit score requirements, as they directly impact the terms and conditions of their mortgage loans. Credit score improvement during the loan process may lock in a better score. This can increase your chances of getting loan approval and improve interest rates and terms.

Therefore, borrowers should proactively manage their credit profiles and financial stability to meet the established criteria and secure more advantageous mortgage financing.

How Credit Scores Affect Debt-to-Income Ratio Caps 

Credit score changes during underwriting process can impact debt-to-income ratio limits for FHA loans. The automated underwriting system may perceive borrowers with credit scores below 620 FICO as having a higher risk.

The AUS algorithm may cap the debt-to-income ratio to 31% front-end and 43% back-end on lower credit score borrowers on FHA loans.

Typically, data indicates that individuals with credit scores under 620 are likely to receive an Automated Underwriting System (AUS) approval with a debt-to-income ratio not exceeding 43%. Conversely, borrowers with higher credit scores may secure approvals with front-end and back-end debt-to-income ratios of up to 46.9% and 56.9%, respectively.

Getting Approve/Eligible per AUS With Higher Debt-to-Income Ratio

In general, higher debt-to-income ratios indicate higher-risk borrowers, increasing the likelihood of default on home loans compared to those with lower ratios. It’s important to note that credit score changes during underwriting process can further impact the borrower’s risk profile.

Borrowers with credit scores of 620 or higher can have a maximum debt-to-income ratio cap limit of 46.9% front end and 56.9% back end to get an approve/eligible per the automated underwriting system.

Understanding your debt-to-income ratio (DTI) is essential during the mortgage application process, especially considering the potential credit score changes that may occur during underwriting. DTI represents the portion of your monthly pre-tax income that must be assigned to cover your monthly debt payments, including the expected payment for the new home loan.

This information is crucial for lenders evaluating your creditworthiness and assessing any credit score fluctuations that might arise during the underwriting process.

Debt-to-Income Ratio Guidelines on Manual Underwriting

Borrowers with higher debt-to-income ratios must ensure they boost their credit scores to over 620 FICO. Manual underwriting guidelines on FHA and VA loans cap the debt-to-income ratio as follows:

  • 31% front-end and 43% back-end debt-to-income ratio with no compensating factors
  • 37% front-end and 47% back-end debt-to-income ratio with one compensating factors
  • 40% front-end and 50% back-end, with two compensating factors

The above debt-to-income ratio cap is a recommended guideline by HUD and the VA. Mortgage Underwriters can surpass the DTI-recommended caps on manual underwriting if they feel the borrower has strong compensating factors. Underwriters have a lot of power and underwriter discretion on manual underwrites.

Credit Scores Fluctuations During Mortgage Process

Credit scores experience daily fluctuations, and borrowers can employ strategies to optimize them, recognizing the detrimental impact of maxed-out credit cards. However, it’s crucial to understand that these changes in credit scores are temporary, especially during the underwriting process.

Consumers’ credit scores will instantly go back up once they pay down their credit card balances.

For prospective homebuyers, consider reducing credit card balances before applying for a mortgage loan. This proactive approach can lead to the best and highest credit scores possible when their mortgage loan originator assesses their credit, facilitating a smoother underwriting process with favorable credit score changes during underwriting process.

Does Credit Card Usage Affect Mortgage Approval?

Credit Score Changes During Underwriting ProcessCredit score changes during underwriting process is particularly influenced by a high credit card balance. Rest assured if you’re concerned about potential credit score drops in this phase. Given the inherent fluctuation in credit scores, it’s common for mortgage loan applicants to wonder which credit scores lenders consider for home loan qualification. As previously noted, fluctuations are often tied to credit card balances, and having a maxed-out credit card can significantly impact consumer credit scores. Get approvable for you loan , click here to fill up your quote

How Paying Down Credit Card Balances Will Skyrocket Credit Scores

If you have five maxed-out credit cards and pay those five balances off, you can easily boost your credit scores by over 100 FICO points just by paying down your credit card balances.

It is highly recommended that you pay down all of your credit card balances to 10% of your available credit limit to get the best possible credit scores possible.

Before applying for a home loan, make sure that you pay down all of your credit card balances. Whenever loan officers pull credit, it is normally a hard credit inquiry. Each hard credit inquiry will drop credit scores by at least two to five FICO points.

Which Credit Scores Do Lenders Use To Qualify Borrowers

Borrowers should not be worried about credit score changes during underwriting process because the original credit score is used and is valid for 120 days. The credit scores mortgage lenders use are the middle of the three credit scores. There are three credit reporting agencies:

  1. TransUnion
  2. Experian
  3. Equifax

Lenders pull credit from all three credit bureaus. It is called a tri-merger credit report. Lenders are well aware of credit score changes during underwriting process. They will use the middle of the three credit scores of the tri-merger credit report. The credit score used to qualify will be used throughout the mortgage process.

How Do Lenders Determine The Qualifying Credit Score For Borrowers

The best way to illustrate how mortgage lenders determine the qualifying credit score of borrowers is to show an illustration and case scenario. For example, here is how lenders use a borrower qualifying score:

  • may have a 500 FICO credit score on TransUnion
  • 600 FICO credit score on Experian
  • 700 FICO credit score on Equifax
  • The middle credit score is a 600 FICO credit score of Experian
  • So that credit score will be used throughout the mortgage approval process

How Long Is The Initial Credit Score Valid For?

This credit score will be valid throughout the whole mortgage underwriting process. The credit report submitted and credit scores used to qualify the borrower are valid for 120 days or four months. If the mortgage approval process gets extended beyond 120 days, a new credit report will need to be pulled/ The new credit score will be used to qualify the mortgage borrower, and the old credit score will no longer be valid.

Do Lenders Run Credit Again Before Closing?

Many mortgage applicants believe that once the lender has their credit report, they are home-free. That’s just not true. Mortgage lenders will pull your credit more than once during the home mortgage process. Lenders will pull the initial tri-merger hard pull to qualify borrowers. They will pull credit before a clear to close.

Do Lenders Check Credit After Clear To Close?

Remember how credit changes during underwriting process and how it can impact mortgage rates.  Similarly, your closing date might change if your new home is under construction. You don’t want to be three weeks out from closing and have a new credit report turn up problems.

A clear-to-close means the lender has approved the borrower for the mortgage loan. The lender’s closing department will prepare docs and coordinate the closing with the title company.

Before the wire to the title company, the lender will check your credit and do a final verbal verification of employment one last time. This is more of a qualified control method before the money is wired. A loan can be denied after a clear to close if the borrower quits their job or the credit report shows inquiries that resulted in new debt. Qualify for a loan by fill up your quote, click here

What If My Credit Scores Drops After The Clear To Close?

Credit score changes during underwriting process are expected. Credit scores fluctuate, and credit score changes during underwriting can happen daily—no need to worry. The original credit score is used until the loan closes and is valid for 120 days. Mortgage underwriters can pull credit again during the mortgage process if needed. Normally, credit pulls during the mortgage process are soft pulls. Refinancing borrowers should be especially careful.

Original Credit Score Used For Mortgage Approval Expires in 120 Days

Borrowers should be aware of credit score changes during underwriting process and scores can drop. The original credit score used to qualify borrowers is valid for 120 days. After 120 days, the lender must pull a tri-merger credit report and use the new updated middle credit score.

If the updated new credit score changes during underwriting process are lower than the expired score, the lower score will be used.

Home purchases have tight deadlines, so refinances can have lower priority and take longer when lenders get busy. If your refinance takes a few weeks longer than expected, you’ll get a new credit report and potentially a new set of problems.

How Rates Can Be Affected By Credit Score Changes During Underwriting Process

If borrowers’ credit scores drop during the mortgage process, it does not matter. This is because the initial credit scores submitted with the mortgage loan application to the mortgage processing and underwriting will be the credit scores used throughout the entire mortgage loan process.

It will be a problem if credit scores drop during the underwriting process if the borrower decides to change mortgage lenders during the mortgage process. This holds true because the new lender must re-pull the borrower’s credit, and the new credit report and scores will be used.

What Happens If Credit Scores Increased During The Mortgage Process

Conversely, if credit scores have increased during the mortgage approval process, borrowers can use the new higher credit scores to lock in a better interest rate. Not all lenders allow this. However, we allow the higher credit score to be used to lock in a better mortgage rate.

Many lenders do not allow borrowers to use the higher credit scores and replace them with the lower ones submitted with your original mortgage loan submission.

We do allow it at Gustan Cho Associates.  If you have any questions, contact and discuss them with the mortgage loan originator, call us at 800-900-8569, or text for a faster response. Or email us at The team at Gustan Cho Associates is available seven days a week, on evenings, weekends, and holidays.

FAQ: Credit Score Changes During Underwriting Process

1. What happens if your credit score changes during the underwriting process of a mortgage application? Will the lender cancel your approval, potentially resulting in a higher interest rate? Or does it ultimately not matter? If your credit score changes during underwriting process, it generally won’t impact your mortgage approval unless the change is due to new derogatory information. Enhancing your credit score during this phase can even lead to better pricing. However, a decrease in credit scores, especially due to adverse events like missed payments, can pose a risk and may require a return of your application to underwriting, potentially causing delays in the closing process.

2. When do lenders pull credit scores during the mortgage process? Lenders typically pull credit scores during the underwriting process for a home loan. They obtain scores from the three main credit bureaus (Experian, Equifax, and TransUnion). The middle score serves as the reference point for underwriters. In cases with multiple applicants, the borrower with the lowest credit score determines the representative score, influencing interest rates and loan eligibility.

3. How long is the initial credit score used to qualify good for? The initial credit score used for qualification is valid for 120 days. If the mortgage loan doesn’t close within this timeframe, a new credit report is obtained, and the resulting score becomes the “official” one for your file. Credit inquiries, new accounts, or derogatory items before closing may pose risks, requiring a return to underwriting and potentially jeopardizing loan approval.

4. What happens if credit scores increase during the mortgage process? If credit scores increase during the mortgage process, some lenders may allow you to adjust your rate based on the updated higher scores, potentially resulting in lower interest rates. It’s essential to lock in your rate with the improved credit score. However, once your rate is locked in, further increases in your credit score won’t affect the interest rate, as loan pricing often operates on tier systems.

5. What if credit scores drop during the mortgage process? A drop in credit scores during the mortgage process does not automatically lead to an increase in your mortgage rate or denial of your loan application. However, a significant drop due to adverse events may necessitate a return to underwriting. If you no longer meet credit score requirements, exploring alternative loan programs or improving your credit before proceeding with the loan may be necessary.

6. How do credit scores affect debt-to-income ratio caps? Credit score changes during underwriting can impact debt-to-income (DTI) ratio limits for FHA loans. Lower credit scores may result in lower DTI ratio caps, affecting loan eligibility. Borrowers with higher credit scores generally have more favorable DTI ratio limits. Understanding your DTI ratio is crucial during the mortgage application process, especially considering potential credit score changes.

7. How do lenders determine the qualifying credit score for borrowers? Lenders typically use the three credit bureaus’ middle credit score to determine the borrowers’ qualifying credit score. If a borrower has scores of 500, 600, and 700 from TransUnion, Experian, and Equifax, respectively, the middle score (600 in this case) is used throughout the mortgage approval process.

8. Do lenders run credit again before closing? Yes, lenders often pull credit again before closing. A clear-to-close indicates approval, but lenders may conduct a final credit check and verification of employment before the loan is closed. Any significant changes, such as new inquiries or debts, could affect the closing process.

9. What if my credit scores drop after the clear to close? Credit score changes after a clear-to-close generally won’t affect the mortgage rate or approval. However, if the drop is substantial or leads to new adverse information, lenders may reevaluate the terms. Borrowers should avoid major financial changes or missed payments after the clear-to-close to ensure a smooth closing process.

10. How can I protect my credit during the mortgage process? To protect your credit during the mortgage process, avoid applying for new credit, refrain from increasing credit balances, pay all accounts on time, and be cautious about old collection accounts. Monitoring and managing your credit actively will help ensure a favorable outcome during the underwriting process.

Remember, credit score changes during underwriting process are crucial, and maintaining financial stability and positive credit behaviors are key to a successful mortgage application.

This blog on credit score changes during underwriting process was updated on February 20, 2024.

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  1. I have a middle credit score of 538 husbands has a score of 610 and need to get approved for a home loan

    1. You can qualify in minutes and get advice from one of our loan officers just by clicking the Prequalify Now link or by contacting Gustan by phone or text. Thank you!

    2. 9 year old credit account was removed and that caused my credit score to drop 57 points. I close in 4 weeks. would that affect me.


  2. I just read in your blog the article about becoming an MLO with bad credit. Thank you so much for doing this. I am about to take the exam next week and my only concern is not whether to pass the exam or not but whether I am going to be licensed after that since I have a bankruptcy (discharged) in 2020. Right now my score is 705 and I have 4 credit cards with 0% utilization. I am going to apply in New York. Have you heard anything about this state? Thanks again for your time and help.
    P.S. If everything goes well I would very much like to join your network…

    1. The bankruptcy will not affect your licensing. You will get licensed in all 50 states with the bankruptcy.

  3. My credit score from Credit Karma just dropped 60 points. I close on my mortgage in 3 weeks.
    What should I do?

      1. I close in 2 weeks credit score dropped because I didn’t pay my credit card balance down on time but I did the same day it dropped 88 points before that and I purchased something for 1100 dollars making auto.atic payments will that affect me

          1. Why do all over the internet it says underwriting or lendor will check your credit at the beginnin and prior to closing?

  4. My computer died and I opened up a new line of credit to purchase a new one ( line of credit 4K, amount spent $1500). I then signed all of my loan paperwork and the niters mentioned not opening any new lines of credit.
    It was a hard inquiry ( I think a 7 point decrease) and now I’m spiraling. We close in under 2 weeks.
    Should I be concerned?

    1. You do not have to be concerned. Lenders use the credit score that was first used when they qualified you. The middle credit score first used to qualify you is the credit used throughout the entire loan process. That credit score is good for 120 days.

  5. My husband has a collection that falls off his credit next month in August. Will the loan officer take that debt off our debt to income ratio?

      1. Hey I had a transunion score of 734, equifax of 734, and experian of 754. I’m in the underwriting process after preapproval. My experian score dropped 20 points due to a balance on one of my credit cards. I close in 3 weeks. Should I be worried? I am paying off the card now

  6. My credit score dropped 70 point and I’m in the paperwork process of the loan. will i be denied my loan? what should I do??? I’m very discouraged at the moment.

  7. I am supposed to close this week and my credit dropped by 5 points due to an increase of credit card usage. I have an FHA loan. How badly do you think this will affect me closing.

    1. It will not affect your closing at all. Lenders will use the original middle credit score used to qualify you. That credit score is good for 120 days

    2. The last time they checked my credit was in November and my score was 675 and I made the mistake of using my credit limit on a card and they lowered 34 points. now my score is 637 and my closing is in March the reason why I am concerned is because I would prefer the conventional loan instead of the FHA now I pay my entire balance on the card to see if I get my score back before they check my credit . Is it possible to recover 34 points in 30 days just by paying the balance of your cards? what I do?

  8. I’m in the middle of underwriting, with a credit score of 725. I have only one vehicle on my debt to income. I’m going the FHA route being a first time homebuyer. All of a sudden a $300 medical collections hit my credit. Should I be worried?? It dropped my score 60 points!!!!

    1. Medical collections are exempt with us. You should not be worried. lenders will use the original credit score throughout the loan process. The original credit score is good for 120 days. I would try disputing the medical collection and it will go up the 60 points you have lost.

  9. my score dropped 30 points and we are closing on a house in a week. my score dropped because I was late on my care note due to using that money to pay for the home inspection. normally I would’ve just used my credit card but I was told not to use my credit cards at all. we really haven’t had any good guidance on the do’s and dont’s and I am terrified that I might’ve messed us up due to a misunderstanding.

  10. I hat approved for a loans to buy a home, I got a credit card to get my vehicle fixed, my credit dropped a lot, I paid the credit card back full, the lenders did another credit check while my score is low, can I still be approved fir this house?

  11. Literally just got a notice from FICO a new debt collection was added to my report but it looks like the original debt(hadn’t been touched in about three years) owed was sold to another collection agency. I was getting these calls from this collection agency and didn’t know why and now I see where it came from. I’ve been under contract since February first credit pull was made in April/May I was in good standing.

    Second pull was made at end of July middle Score at 680/690 something like that I Close 9/15 or 9/22 I hope sooner than later…needless to say I’m wondering if I need to advise my loan officer…so torn…I feel like I should just let it be they asked for updated docs since
    My closing got pushed back to the dates mentioned above. I’ve already been approved just need that clear to close. Should I speak up or keep it quiet? Let them bring it up?

    1. Talk to your loan officer regardless and let him know. Lenders will do a soft pull prior to a clear to close and prior to funding so they will find out. Regardless, it does not matter and will not affect your loan approval. Even if your credit scores dropped significantly, it does not matter. All lenders use the original middle credit score when you applied and that credit score is used and is good for 120 days. Therefore, you have absolutely nothing to worry about.

  12. I’m supposed to close on a home in 21 days. But I’m worried that I could have possibly screwed my chances of closing due to a derogatory mark hitting my credit yesterday. I immediately paid the account in full after becoming aware. It’s a Comcast account that I thought was taken care of totaling $300. Did I screw up my chances of closing? Or do you have any solutions.

  13. Hello,

    I am closing on my house Sept 23rd. I found today that a medical bill for 400$ and a gym membership I cancelled 2 years ago apparently charged me 550$. It dropped my points 58 points. I am outraged. The medical bill is only 4 months old and I had no idea I even owed it. The gym membership is outrageous. The location I went to was closed down. I am so nervous I will loose the loan. I am in a position to pay the charges to avoid denial if need be. How concerned should I be? Thank you for any input.

    1. Medical collections do not matter. We normally disregard medical collection accounts altogether. However, many lenders have lender overlays on collections. Your gym membership should not matter due to being under $1,000 dollars. Your drop in credit scores should not matter because lenders normally use the original middle credit score used to qualify you and submit your loan. That middle credit score is good for 120 days. If you run into complications with our current lender, contact us at We will be able to do your loan and expedite it through.

  14. My husband has a 537 median credit score. Today we paid off all items on his reports that was in collections. Can I apply for the loan now if I have the confirmation numbers of the payments or did we need to wait until his score is high enough?

  15. I’m closing in a little under 3 weeks and I just had a derogatory mark go on my record and my score dropped 22 points. It’s $454 Comcast bill. Will this affect my closing? Should I pay this bill today? My credit score was 655

  16. I am in the process of purchasing a new manufactured home. I closed on my home yesterday 9/20/21. I was told by the mobile home dealer that they do not receive funds from the bank until after the home has been built and set up on my property. I will then conduct a walk thru and sign off if I approve of the home. In which then the bank will release funds to the dealer. However, I was told yesterday that I can not do anything that would alter my credit situation (buy a car, open new credit accounts), until after the dealer has received the funds? Approximately 2 weeks ago, I purchased a new vehicle, was having problems with my old vehicle. The total price of the new vehicle was less than $1k more than the old. So my debt to income has not drastically changed, however there is a new credit line on my account. I thought at closing, my loan process was finalized and I was just waiting for my house to be set. Apparently the dealership wont even begin building my house until October, meaning I wont even get the house on my property until mid November? The inital credit pull was done approx 3 months ago. But if they pull my credit again once the house gets set in October/November, the new credit line for vehicle will appear. Will they take my house or land away? Will they even pull my credit again after I have already closed on the loan? I did close with a land and title attorney. The land and title attorney did receive funds from bank to cover closing cost.

  17. My rate is locked and my initial approval has been done. My lenders asked me to check on an old account that was still showing a balance but wasn’t reporting, I did and the account has been paid off but for the months it wasn’t it’s now reporting. My score went from a 708 down to 750 (mortgage Experian score.) How will this effect my loan? I’m freaking out and don’t understand why this is happening if the account is paid off.

  18. Hi, we are set to close on 11/23. We were told that our file went through u dee writing and we were successfully approved for fha and just waiting for the final appraisal and title work to get the clear to close. We have a charge off on our account from 3 years ago for 18k and the credit reporting agencies just updated and now it says sent to recovery for that account. Does that mean that it’s been sold and the new collector may now put something on our credit reports? How will that affect our closing if that happens? It seems like they would have considered the possibility of that in underwriting since they saw the charge off but idk…

    1. We do not care about charged-off accounts that the date of activity is older than 12 months. If your lender is giving you issues, please contact us with your contact information at or call us at 262-716-8151. Text us for a faster response.

  19. Hi, I have a question. Thank you for your help and you have been helpful with the previous post. I am about 2 weeks from closing. Everything has been fine. I am waiting for my clear to close. However, my nursing school placed a debt on my report which they could not confirm the amount (it is for 7500!). My score has dropped about 17 points which I read about my original score it good for 3 months, it has only been a month. They haven’t said anything about it as of yet. I told my officer that it should not be on there. I haven’t opened any accounts or anything. Should I be concerned? Thanks.

    1. They will most likely find out. If the debt is a private school loan delinquency, then it is alright. The underwriter needs to take 5% of the outstanding debt and use that towards your debt to income calculations. If it is not your debt, then show documentation and get a release from the creditor and your loan officer can do a credit supplement.

  20. I am closing on a home in less then 30 days. My score dropped 50pts due to a landlord saying I owed 230 for some damages I didn’t do. Will this affect my closing if I don’t pay?

    1. It should not affect you but it is up to your lender. We just use the credit scores you were qualified with and that credit score is good for 120 days/

  21. We were scheduled to close on 12/28/21 we were waiting for the appraisal date,and they called today saying my husband’s credit dropped 30 points bringing the score to 560 and now they said we are done, is this possible?

  22. Hello,

    I applied for my mortgage with 0 collections or debts on my credit. Now I am in underwriting with a conditional approval. Closing date 12/23. Today, i noticed a collection acct for DirectTV in the Amt of $422 which was previously removed from my credit years ago is now reporting on my credit again. How will this affect my loan? What should i do?

  23. My credit score was a 629 on credit karma and I’m under contract the underwriter asked me to remove all disputed remarks. I did and my score dropped to a 580 I close in March supposedly but with the shortage of supple could be longer. I’m devastated. My collections are paid off or settled I just have medical no active credit cards how can I pull credit up by the time I close and will this drop effect me

    1. Dispute your medical collections and it will go up. I can help you boost your credit scores and get you fully approved. We are lenders with no lender on FHA LOANS. Please contact us with your contact information at or call us at 262-716-8151. Text us for a faster response.

  24. I close in a little over a week, a few days ago a utilities collections popped up and dropped my score 40 point. I’m now looking at a score of 659. I’m in California with a FHA, will this effect me?

    1. As long as the date of last activity is over a year old, it will not affect you but will affect the DTI calculations. 5% of outstanding collections on non-medical collections will be taken as your hypothetical monthly expenses unless they are charged off accounts or medical collections. Credit scores are good for 120 days.

  25. Hi there! So we were PA for a home and my husband had a medical collection show up on credit report…for 287.00 I immediately called my lender to make him aware because we close on 3/4/22….it dropped his score almost 40 points on credit karma….when I called our lender he said he already ran a credit report and should be okay but to call the collection agency to see if we paid it off if they would delete if from the credit acct and if they won’t to not pay it….he said if it’s like 100 PTs it could affect our loan process I’m hoping this isn’t the case what should we do?

    1. You should be fine. Just dispute the medical collection and your credit scores are going to go back up. Medical disputes are exempt from credit disputes. Also, Your original credit scores used is good for 120 days.

  26. I am refinancing my home with cash out. My middle credit score was a 585 when they initially qualify me for the loan on January 25. I just had my home appraised today and had to provide some additional documentation on my 401k balance today. Other than that they have everything they need from me.

    So I just looked at my credit last week and saw 2 of my credit accounts went into collections where my new middle score is now 537. So am I in the the mortgage process and are they going to disqualify me for the loan based on the new score?

    1. You can refinance with an FHA cash-out with credit scores down to 500 FICO. Please contact us at or call us at 262-716-8151 if you need a lender with no lender overlays. Text us for a faster response.

  27. Hi, I’m scheduled for closing on February 25th, today I got a message from Experian advising one of my credit cards reported that I went over the limit. My credit score dropped 48 points. Can you please let me know if my loan can be denied?
    I have a FHA loan for first time buyer.
    Thank you for your time.

  28. Hi, I was approved for a fha loan thru rocket mortgage and I close March 8 2022 when they first pulled my credit it was 644 and I noticed yesterday it had dropped to 607 and it was a collection from 2017 on Utilites for 351 should this hurt me? What should I do? I have the money to pay it off?? Should I pay it off? I’m worried

  29. I received my preapproval on February 28th with a credit score of 659. I am using the VA loan who require a minimum 620. My closing date is April 12. I am currently in underwriting. Today an old collections account was added to my credit report and even though it’s paid off it’s showing that it dropped my score 50 points. I have proof that it was paid off, it’s just going to deny my loan?

      1. My lender said they shouldn’t need to pull my credit again because it’s only 42 days from preapproval to close date but I heard they pull right before funding. Is that true? Just scared because my score dropped 12 points below the minimum.

  30. If the process from pre approval to close takes less than 30 days will the underwriter still do a soft pull before closing? I noticed they did a soft pull on 5/1 which was when we first entered underwriting so will they do another?

    1. Yes, underwriters will do soft pull during the mortgage process and prior to clear to close

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