Author Topic: I got a pre-approval for a mortgage but it was a high-ish rate  (Read 378 times)

Daisyedwards800

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I got a pre-approval for a mortgage but it was a high-ish rate
« on: September 18, 2019, 11:57:59 AM »
Because I had some credit card debt.  I paid off the debt today.  It's the only negative thing that was on my report, and I have a stellar payment history etc.  On Experian my FICO was 670 and the simulator says it will go up to 760 when the balances are $0. 

My question is if I confirm my FICO is indeed higher than 740, and go to another lender, when they pull my credit, will they get the score that this original lender got (670), OR will it be the latest and greatest score from their credit reporting service?  The original lender led me to believe that if I go to any other bank that my score will be the same exact one that she pulled (even if the score itself has been updated by the companies).

Thanks.

mozar

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Re: I got a pre-approval for a mortgage but it was a high-ish rate
« Reply #1 on: September 18, 2019, 12:53:27 PM »
Which score did your lender pull? You can pull it yourself to see what it is in a place like credit karma or as a service on your credit card. Not only will a different lender be able to pull up your new updated score but your old lender can and should as well. You have a month, I believe, to pull your credit several times without dinging your credit, which would only be dinged by a little bit anyway.

Daisyedwards800

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Re: I got a pre-approval for a mortgage but it was a high-ish rate
« Reply #2 on: September 18, 2019, 01:12:27 PM »
Let's say another lender pulls it in 10 days, and the scores have updated.  The lender will get the new score right?

TheHardenedInvestor

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Re: I got a pre-approval for a mortgage but it was a high-ish rate
« Reply #3 on: September 18, 2019, 03:46:49 PM »
Of course.

Another Reader

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Re: I got a pre-approval for a mortgage but it was a high-ish rate
« Reply #4 on: September 18, 2019, 04:01:29 PM »
The creditors you paid off have to report the new zero balance to the credit reporting agencies and they have to add the new balances to their databases.  That usually takes 30 days.

One thing you should be aware of is having no outstanding balances will actually lower your score.  The models want to see several low balances on accounts that are paid on time every month.  If you have had late payments, paying off the balances will not outweigh the late payments.  It can take years for the effects of late payments on your scores to disappear.  The models like to see small percentages of available credit in use as well.  For example, if you have a $3,000 limit on a credit card, having a balance of $100 to $300 every month with a history of steady payment will raise your score over time.  A zero balance is of no help.

You can use Credit Karma to get an idea of where you stand, but there is no substitute for a real score pulled by a potential creditor.  Credit Karma will show when the balances change, but it may take awhile for them to catch up to your payments.