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VOR and my credit scoreVOR and my credit score
Irey said: "Hi,
In getting a home loan these days it is so common to be asked to bring in check stubs and utility bills to provide a varification of rent and utilitys to boost your "score".
Does anyone know how much this boost the "score" or what percentage it affects it?
Thanks in advance,
Shawn"
bouchard3775 said: "I don't know how those could bring your score up if they aren't reporting on your credit report..sounds stange. I did read from another person's post that when they were shopping for a mortgage they brought a copy of all 3 credit reports with them so they would only have one inquiry listed on the report. I think if you are looking for a mortgage you should pull your report yourself first and see if everything looks good first. With such a large investment you want to make sure you get the best interest rate available... because just think about it if you have a 5.5 interest rate as opposed to a 6.5 or 7.0 you are going to save like 130,000 in interest over 30 years on a 200,000 dollar loan or something crazy like that...so do lots of research and don't just jump into any loan you can get!!!"
MichaelG said: "[QUOTE=bouchard3775]I don't know how those could bring your score up if they aren't reporting on your credit report..sounds stange. I did read from another person's post that when they were shopping for a mortgage they brought a copy of all 3 credit reports with them so they would only have one inquiry listed on the report. I think if you are looking for a mortgage you should pull your report yourself first and see if everything looks good first. With such a large investment you want to make sure you get the best interest rate available... because just think about it if you have a 5.5 interest rate as opposed to a 6.5 or 7.0 you are going to save like 130,000 in interest over 30 years on a 200,000 dollar loan or something crazy like that...so do lots of research and don't just jump into any loan you can get!!![/QUOTE]
Well... your figures are quite questionable and neglect the following:
Very few of us will have the same loan/be in the same house for 30YRs!!
You will most likely refinance again within a couple of years if not sooner not to mention that you'll probably end up selling the home well before 30 years making your interest savings/figures a mute point.
With less than perfect/damaged credit, the priority first and foremost should be getting into your first home, even if the rate is above prime or conforming rates. There's always time down the road after credit cleanup is accomplished and hopefully finances are stronger to move into a more competitive rate and/or a new (2nd) house.
Like I mentioned, few of us stay in our first home for 30 years. That's why they're referred to as starter homes."
bouchard3775 said: "I know what you are saying I was just letting him know how ridiculous a 1 percent interest rate difference can really be. I always overexaggerate :). But you are right the first home is usually a starter I just want to make sure he shops around a bit...."
FICOdemon said: "1. It is common to bring in proof of income. If you have no fico score because of to little credit, then loan officers will ask for utility bills and try to sell the loan to the underwriters based on payment history with utilities. They are not usually successfull in this case from what I know.
2. None of this will affect any fico or credit score. Many lenders use other lending scoring models that incorporate your fico score. For instand - a fico score of 600 - 660 would equal 1 point, fico 660 - 680 equals 3 points - ect.
Other factors such as debt to income ratio, down payment, lenth of time at current employer, ect are each given a point value. Twenty minutes later you have your loan score - which determines approval or not, as welll as interest rate."