Contractor · Mobile, AL · Member since 2019 · 47 posts · 32 votes
So I’m having my Coffee and getting my financials ready to go meet my lender today to do my first deal. I check my credit score and notice my score dropped from 700 to 648. My mortgage company sold my mortgage on my personal house and it says the account is closed. I am so mad right now I could spit nails. I made a cash offer 4 days ago and now will have to use a lender too finish the deal. I’m afraid this will stop me dead in my tracks. The new mortgage has not shown up on my account yet.
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
7y
Paying off a home loan usually boosts a credit score. We had our mortgage sold off 3 different times in 2 years, and it did not affect our score. Newer loans, hard credit inquiries, too high of balances will definitely impact your score. I also am not sure why you're worried about how your credit score affects a cash purchase as all you usually need is proof of funds.
So I’m having my Coffee and getting my financials ready to go meet my lender today to do my first deal. I check my credit score and notice my score dropped from 700 to 648. My mortgage company sold my mortgage on my personal house and it says the account is closed. I am so mad right now I could spit nails. I made a cash offer 4 days ago and now will have to use a lender too finish the deal. I’m afraid this will stop me dead in my tracks. The new mortgage has not shown up on my account yet.
Please Help!
First, Credit Karma is a lousy way to track credit scores. When you take out a mortgage, they use a different credit algorithm for mortgages. The only score that counts is the one that your lender pulls.
If you are dealing with a lender that understands the business, you tell them that you have a new loan and they will do a "rapid re-score".
Also, if you made a "cash offer" before, how does this affect the purchase so that you are now needing to use a lender?
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
7y
Paying off a home loan usually boosts a credit score. We had our mortgage sold off 3 different times in 2 years, and it did not affect our score. Newer loans, hard credit inquiries, too high of balances will definitely impact your score. I also am not sure why you're worried about how your credit score affects a cash purchase as all you usually need is proof of funds.
Contractor · Mobile, AL · Member since 2019 · 47 posts · 32 votes
7y
@Mike M. I just usually check it anytime before I do anything. I now know it’s not what the bank sees. Credit Karma also gives you an explanation as to why it dropped and that was the only thing it said was the account was closed. I had made a cash offer for $40,000 on a property to try and entice them before I would have to get my lender involved. The seller denied the Cash offer so now I have to use a lender. I called her today and she confirmed what you said in your post. She basically said you silly boy don’t worry I’ve got this! Now let me do what I do and let me work! Lol!
Thank you for taking the time to write a response. I think I will be alright.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
7y
our regional bank uses FICO4. The vantange III score (reported by credit karma and bankrate) is not used by most mortgage lenders. Vantage III heavily penalizes the use of credit. FICO gives more credit for payment history and account age. Go to discover.com and you can set up an account to check your FICO8 (even if you don't have a discover card). It will be closer to what your lender is using than credit karma
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
7y
A sold mortgage doesn't drop the score but sometimes you need to explain what happened to the bank.
@Jill F.Discover.com may not be accurate either. I have been checking my sons score on discover.com and it doesn't match the bank score, the discover score was much higher. It may be his situation but that was our experience.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
7y
@Colleen F. Discover is not the same score my bank uses, but for me it was much closer to the version of the Fico used by my bank. i read auto dealers use a FICO 10 score. I was shocked to learn how many different versions of a credit score there are. I use personal credit for business so I show very heavy credit use especially when I buy inventory and my Transunion Vantage III score is sometimes 100 points lower than my FICO 8.