Inquiries and Credit Scores

The folks we are working with are trying to buy a house – and literally every thing little part of your credit report matters when you are trying to raise your credit scores, and buy a house!

Does the TYPE of Inquiry on your credit report Matter?

“Above the Line Inquiry” has an impact and the Below the Line – soft inquiry… does not.  The account review is below the line, where a creditor is just doing a check. 

The folks who do an employment pull are considered below the line.

When you apply for a credit card, mortgage, car, etc – those have a 30 day buffer. Meaning if you apply for an auto loan from 5 places during a 30 day period, your credit scores will have NO impact.  During the 31st day to 45 day period all of them are seen as ONE pull.  After that the credit inquiries will have an impact on your credit scores.

In 1998 Fair Isaac did some validating on the score model.  They found that someone who is shopping will generally have all of the “pulls” within that 45 day period.  After the 45th day, it’s generally considered (by the computer program) to be seen as a “new” purchase you are interested in.

An inquiry from www.annualcreditreport.com is not going to have an impact on your score – which is great news!  However, just getting your annual credit report will not actually give you a real FICO score! ( It is only for accuracy of your report)  You will get Factor Codes, which will give you an idea of ways you can increase your score… meaning if you have the top factor code of “delinquencies too recent,” that means that the best way to get scores up is to pay your bills on time.  If it says not enough history – only time is going to fix it… etc.

We are one of the few Banks that offers the FHA Home Loan NC Program to those who have minimum credit scores under 600.  It has an additional set of added Bank restrictions, however, we can do mortgage loans for folks who have credit scores between 580 and 619.

We can also do FHA Home Loans and Veteran Home Loans down to the 580 minimum credit score mark too.  VA Loans don’t really have a set minimum credit score requirement, but most VA Loan underwriters want to see 3 credit scores, with some “open” trade lines, and clean credit (no late payments) for at least the last 12 months. The best terms for Minimum Mortgage Credit Scores in NC for 2016 are between 600 and 640 (for the most part)

If you are considering a home purchase, and want to take advantage of the REALLY low mortgage interest rates call Steve Thorne, Mortgage Loan Officer in Cary , 919-649-5058.   We close TONS of mortgages, and we work with folks who have some credit issues.  We are not going to blow you off, and we have the tools to help you raise your credit scores.