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FICO dropped after pre-approval

I was pre-approved on September 1st for $405k. My FICO at the time was 718. I recently paid off my car, about 30 days after I was pre-approved. I pulled my tri-merge and found that my score dropped 37 points, which placed me into a completely different credit bracket (good vs excellent). Will my approval need yo change too? I have not found my house and I was told that the pre-approval expires in 60 days. OI live in CA, it is not that easy to find a 3 BR house in a safe neighborhood for under 400k. I can use some advise. by zwood845 from Tustin, California. Dec 4th 2018 Reply

Chris Neuswanger (mtnmortgageguy)
#93 ranked lender in Colorado - 92 contributions

Mortgage lenders use different FICO scoring models than are generally available to consumers, so your lender may not see a decreased credit score, but they might. FICO scores are fickle, one would think paying off a loan would help but sometimes it does not. Your credit report on your pre approval will be good for 120 days, so if you hurry you might be able to close using that report if you go with the same lender you got preapproved with.

Dec 5th 2018
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

More info needed, but in general.. when you have a pre-approval, and you buy within the acceptable time frame (90 days), then the lender will go with the credit score on the report that's still valid. All conforming loans require the credit report to be dated 90 days or less.. the only exception for this is if you having a home built, then 120 is allowable, but most all construction lenders will still re-pull the credit report. Keep in mind that the loan must close inside of 90 days otherwise the lender will re-pull the credit report and if the score is lower, then your interest rate may change. Also, lenders use different scoring models than those "Check your Fico" websites.. and lenders always pull the 3 major bureaus, then they use the mid score for loan pricing.. so if only one score has dropped, and the other 2 have not.. it might not affect your loan. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Dec 6th 2018
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