Credit Score On Conventional Loan

Recently I pulled credit for one of my customers who would have had perfect credit if it wasn’t for a $70 medical collection. The borrower had a middle credit score of 678. Due to this below average score, he was not going to get the lowest interest rate on a conventional loan.

I recommended he pay off the collection and have him provide us with proof that we could upload to the bureaus to show the collection was satisfied. His credit score was then recalculated. His credit score went from 678 to a score of 791. As a result, he received a .375 lower interest rate.

The bottom line is by paying off the collection and re-pulling the credit, my customer lowered his payment $55.37 per month and will save $664 every year he has the mortgage. All that money will be saved as a result of paying off a $70 collection. Needless to say, my borrower is thrilled 🙂

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s